Japanese companies used to be at the forefront of the semiconductor industry. But now they are lagging behind. The Ministry of Economy, Trade and Industry has shifted its focus to attracting foreign capital. Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) will be the world’s leading company in mass production technology for advanced semiconductors. TSMC will build a factory in Kikuyo-cho, Kumamoto Prefecture. The Japanese government will provide financial assistance of approximately $7 billion for this project. The reason why Japanese semiconductors have declined is because the speed of management has lagged behind the global standard. It is necessary to look closely at the world’s most advanced companies and learn the world’s quick-decision-making management. The $7 billion will be a tuition fee to learn about the world’s most advanced companies.
The $7 billion tuition fee has already had various ripple effects. The TSMC factory to be built in Kikuyo-cho is being contracted by Kajima Construction. According to Kajima’s president, the construction period for this factory, which would normally take nearly 10 years, must be shortened to two years. Not only the construction period, but also the work density of the engineers and others who support the process has become strict (rational). Kajima has rented the entire hotel near the construction site. The engineers and workers are staying in the hotel that they rented. The hotel used to serve breakfast from 6:00, but most people apparently went to the work site without eating. The hotel has suddenly changed the time for meals to be served at 5:00. TSMC’s fastest management is changing the time axis of not only semiconductor companies, but also construction companies and hotels. In order to enjoy the world’s cutting-edge technology, it seems that a change in awareness that goes beyond Japan’s previous standards is required.
There seem to be various ripple effects on the local economy as well. 750 TSMC employees and their families have already moved from Taiwan to Kumamoto. One of the ripple effects is the consumption pattern of these people. The wine section of Kumamoto City’s Tsuruya Department Store is lined with high-end products that are rare in rural areas. Customers who appear to be foreigners visit one after another and buy these luxury items. Some people buy dozens of bottles of wine, ranging from $650 to $1,300, multiple times. These buyers are executives of TSMC and related companies. Foreign residents are buying luxury items in bulk, something that would be unthinkable in a regional city. I hope that attracting cutting-edge companies will become a driving force to change Japanese companies and regions.
