Japanese media such as "Weekly Modern" have reported recently that since TSMC decided to enter the Japanese market, property prices in Kikuyo Town, Kumamoto Prefecture have skyrocketed. Many real estate companies are optimistic about investment and residential needs, and have started developing apartments. However, local real estate agents in Kumamoto Prefecture have stated that buildings and hotels are popping up like mushrooms after a rain, but at night, few lights are on, "resembling ghost towns, with no residents."
The weekly magazine "Modern" published an investigative report in September. According to reports, since TSMC decided to build a factory in Japan in 2021, the land prices in Kiyomachi have soared. Developers from within and outside the county are competing for land, resulting in the construction of numerous apartments. Thousands of rental properties have emerged, but now many of these properties are vacant. A large number of three-bedroom houses have been built targeting Taiwanese families. However, most wealthy Taiwanese do not rent apartments; instead, they purchase single-family homes in full cash. Apartment owners who entered the market during periods of high land prices set monthly rents at 150,000 yen, making them unaffordable for local residents. Local real estate experts say, "The bubble is long gone." Some areas in the town are dark at night, resembling ghost towns.
In fact, this issue did not arise suddenly. Japanese television station NTV discussed this problem in a documentary titled "Towns Where Giants Lived: The Light and Shadows of the Semiconductor Bubble" broadcast on September 29, 2024. The documentary explored the “discomfort and confusion” that arose for the original residents due to the soaring land prices and rising rent costs in the areas after TSMC entered them.
"Weekly Modern" reports that local real estate developers are now pinning their hopes on TSMC's second factory. The factory is scheduled to break ground in October 2025 and start production by 2029. However, another real estate developer has stated that town's business hotels have sprung up across the area, the question of whether construction workers will rent apartments remains uncertain. The speculative fever has already moved away from Kyouyang Town and is now targeting neighboring Heshui City and other locations.
Additionally, whether the so-called "TSMC’s second factory" can be successfully established remains uncertain. According to reports from People's Daily and other media, due to the lack of demand for advanced manufacturing processes from major customers, there were earlier reports of construction delays at TSMC’s Kumamoto Second Factory. TSMC is evaluating upgrading its 6-nanometer process to a more advanced 3-nanometer process to meet the demands of AI technology. However, this will require re-designing the factory and prolonging construction time, with the investment potentially soaring from over $10 billion to over $17 billion.
