Nikkei: Japanese local governments court Taiwan on semiconductors
In short
Japan's local governments are stepping up cooperation with Taiwan, centred on semiconductors, as Taiwan's position in the global chip ecosystem rises and China-Japan relations stay cold, Nikkei reported on October 4. Kitakyushu sent its first delegation to Hsinchu, home of TSMC's headquarters, and Taiwan's ASE Group is reported to be planning a presence in the city. Japan-Taiwan local government partnerships total about 180, two-thirds of them agreed since autumn 2021, when TSMC's Kumamoto move took shape.
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Japanese local governments are actively seeking cooperation with Taiwan, with semiconductors at the centre, Nikkei reported on October 4, as Taiwan's standing in the global chip ecosystem rises and China-Japan relations show no sign of thawing. Both documents attribute the reporting to Nikkei. [ 1 , 2 ]
Kitakyushu, an industrial city in northern Kyushu, recently sent a delegation to Taiwan's Hsinchu, where TSMC is headquartered, for the first time, to sound out cooperation between industry, academia and research. The world's largest semiconductor back-end company, Taiwan's ASE Group, was also reported to be planning to set up in Kitakyushu. Officials and business figures from Gifu prefecture in central Japan visited Taiwan to court authorities and semiconductor companies there, and Miyagi prefecture, home to firms including Tokyo Electron, held a regional investment seminar in Hsinchu last month alongside the Semicon Taiwan exhibition to present investment incentives. [ 1 , 2 ]
Ties at the local government level are growing as well. According to the Japan-Taiwan Exchange Association, about 180 partnership agreements existed between Japanese and Taiwanese local governments as of the end of July, two-thirds of them concluded after autumn 2021, when TSMC's entry into Kumamoto was decided. Nikkei projected that the concentration of semiconductor-related companies in the Kumamoto area could produce an economic effect of about 10 trillion yen, or roughly 85 trillion won, over the next decade. [ 1 , 2 ]
A Japanese financial industry figure with experience of Taiwan-related work told Nikkei that with the weak yen entrenched, Europe and the United States feel remote and political conditions make visiting mainland China difficult, leaving Taiwan to emerge as a practical alternative for Japanese local governments. [ 1 , 2 ]
Why it matters
The push shows Japan's chip-related investment reaching beyond Kumamoto into a wider set of municipalities that are building direct ties with Taiwan. Both documents frame the outreach as a response to a cold China-Japan relationship and a weak yen, factors that shape where Japanese local economies look for partners. The documents give no figures beyond the projected Kumamoto economic effect, so the scale of the shift is not yet quantified.
Key facts
- Nikkei reported on October 4 that Japanese local governments are actively seeking cooperation and investment ties with Taiwan, with semiconductors at the centre. [ 1 , 2 ]
- Kitakyushu, an industrial city in northern Kyushu, sent a delegation to Taiwan's Hsinchu, where TSMC is headquartered, for the first time, to explore industry-academia-research cooperation. [ 1 , 2 ]
- Taiwan's ASE Group, described as the world's largest semiconductor back-end (packaging and testing) company, is reported to be planning to set up operations in Kitakyushu. [ 1 , 2 ]
- Local government and business figures from Gifu prefecture in central Japan visited Taiwan to court authorities and semiconductor companies. [ 1 , 2 ]
- Miyagi prefecture, home to semiconductor firms including Tokyo Electron, held a regional investment seminar tied to the Semicon Taiwan exhibition in Hsinchu last month. [ 1 , 2 ]
- As of the end of July, partnerships between Japanese and Taiwanese local governments numbered about 180, two-thirds of them concluded after autumn 2021, when TSMC's entry into Kumamoto was decided, according to the Japan-Taiwan Exchange Association. [ 1 , 2 ]
- Nikkei projected that the semiconductor industry cluster in the Kumamoto area could generate an economic effect of about 10 trillion yen (about 85 trillion won) over the next decade. [ 1 , 2 ]
- A Japanese financial industry figure with Taiwan experience told Nikkei that a persistently weak yen makes Europe and the United States feel distant, and that political conditions make visiting mainland China difficult, leaving Taiwan as an alternative. [ 1 , 2 ]
Confirmed by several sources
- Nikkei reported that Japanese local governments are expanding cooperation with Taiwan with semiconductors as the focus. [ 1 , 2 ]
- Kitakyushu sent a delegation to Hsinchu, where TSMC's headquarters is located, for the first time. [ 1 , 2 ]
- Japanese and Taiwanese local governments had about 180 partnership agreements as of the end of July, two-thirds of them signed after autumn 2021, according to the Japan-Taiwan Exchange Association. [ 1 , 2 ]
- Nikkei projected an economic effect of about 10 trillion yen over 10 years from semiconductor industry concentration in the Kumamoto area. [ 1 , 2 ]
Still unclear
- Whether Taiwan's ASE Group will actually establish operations in Kitakyushu. Both documents say only that the move was reported or planned (전해졌다), without an official announcement or company confirmation.
- The dates, participants and outcomes of the Gifu prefecture delegation's visit to Taiwan. Both documents describe the visit only as having taken place recently, with no timing or results given.
- What the roughly 180 Japan-Taiwan local government partnerships cover and how many remain active. The documents give a count and a cut-off date but no breakdown of their content.
- The exchange rate used for the conversion of 10 trillion yen to about 85 trillion won. Neither document states the basis for the conversion.