The construction of chip factories has driven up land prices in Japan, with Kikuyo Town ranking second in terms of price increase
Affected by the booming tourism industry in Japan and changes in the global semiconductor supply chain, Japan's land value has experienced the largest increase in history.
According to data released by the Japan Internal Revenue Agency on July 1st, Hakuba has seen the largest increase in assessed land prices for tourist destinations, with a 32.1% increase in the past year. Kikuyo, a small agricultural town in Kumamoto Prefecture, has seen a 24% increase in land value due to being the location of TSMC's new chip factory.
Across Japan, the average land value has increased by 2.3%, marking the third consecutive annual growth and the fastest growth since comparable data was available in 2010.
Japan's efforts to increase domestic chip production have successfully attracted companies such as TSMC to settle in Kumamoto. TSMC Kumamoto Plant 1 opened at the end of February this year and is expected to mass produce mature semiconductors ranging from 12nm to 16nm and 22nm to 28nm in the fourth quarter of this year. According to the latest news, TSMC Kumamoto II plant has also settled in Kikuyo and has started land preparation work. Construction is expected to start in the fourth quarter of this year, with the goal of putting it into operation by 2027.
The Japanese Ministry of Economy, Trade and Industry pointed out that TSMC Kumamoto II plant is located on the east side of Kumamoto I plant, with a land area of about 321000 square meters, an increase of about 50% compared to Kumamoto I plant, and an investment of about 2.2 trillion yen. The Japanese government will provide a maximum subsidy of 732 billion yen.
It is reported that the first rebound in inflation in decades, coupled with the weak yen and low borrowing costs attracting foreign investors, have all contributed to the recovery of Japan's real estate market. According to data from Japan's Ministry of Land, Infrastructure, Transport and Tourism, rural land prices saw their first increase in 30 years last year.
Across Japan, the average land value has increased by 2.3%, marking the third consecutive annual growth and the fastest growth since comparable data was available in 2010.
Japan's efforts to increase domestic chip production have successfully attracted companies such as TSMC to settle in Kumamoto. TSMC Kumamoto Plant 1 opened at the end of February this year and is expected to mass produce mature semiconductors ranging from 12nm to 16nm and 22nm to 28nm in the fourth quarter of this year. According to the latest news, TSMC Kumamoto II plant has also settled in Kikuyo and has started land preparation work. Construction is expected to start in the fourth quarter of this year, with the goal of putting it into operation by 2027.
The Japanese Ministry of Economy, Trade and Industry pointed out that TSMC Kumamoto II plant is located on the east side of Kumamoto I plant, with a land area of about 321000 square meters, an increase of about 50% compared to Kumamoto I plant, and an investment of about 2.2 trillion yen. The Japanese government will provide a maximum subsidy of 732 billion yen.
It is reported that the first rebound in inflation in decades, coupled with the weak yen and low borrowing costs attracting foreign investors, have all contributed to the recovery of Japan's real estate market. According to data from Japan's Ministry of Land, Infrastructure, Transport and Tourism, rural land prices saw their first increase in 30 years last year.