Actual Situation of Semiconductor Shortage

Currently, a shortage of semiconductors is continuing in a variety of digital devices such as game consoles and personal computers. Recently, due to the shortage of semiconductors, Toyota Motor Corporation announced that it will deliver some of its future car models with one smart key (electronic key + mechanical key) instead of two smart keys (electronic key + mechanical key) for the time being, as soon as the shortage of semiconductors is resolved. The second key will be delivered as soon as the shortage of semiconductors is resolved. The shortage of semiconductors can be attributed mainly to the supply system shortage, such as “plant shutdowns” and “logistics stagnation” due to the Corona disaster, as well as to the rapid increase in demand for PCs, TVs, and other products (semiconductors) due to the expansion of telework and other nest egg demand, which has spurred a shortage of products (semiconductors). This is the reason for the shortage of products (semiconductors).

Against this backdrop, Kumamoto Prefecture, which is rich in “water resources” essential for semiconductor production, is attracting attention and land prices are soaring.

Invitation of TSMC to Japan

In the 1980s, Japan’s semiconductor industry was the world’s largest, but now its market share has declined to about 10%, and the country is unable to manufacture advanced semiconductors. The Japanese government is working to alleviate the shortage of semiconductors by inviting TSMC (Taiwan Semiconductor Manufacturing Company), the world’s third largest semiconductor manufacturer in terms of total sales, to Kumamoto Prefecture in Kyushu. Some estimate that TSMC plans to employ approximately 1,700 workers when the plant starts operations in 2024, and 7,500 jobs will be created including those at affiliated companies.

Movement to Secure Housing for Workers

In late August, Kumamoto Prefecture sent a letter to three real estate-related organizations in Kumamoto Prefecture requesting their cooperation in securing housing for JASM, a TSMC subsidiary that will build and operate the plant. It is unusual for the prefecture to issue such a letter in connection with the expansion of a single company, and it is apparent that the prefecture is being pressed to secure housing. According to the request document, the number of houses is expected to be enough for approximately 1,000 households, and the conditions are that they must be either whole buildings or floors of rental properties, mainly newly built and less than 5 years old. The request includes detailed descriptions of locations and floor plans for new graduates who will work from October, including employees on loan from TSMC who will sequentially arrive in Japan by August next year and employees who will join the company next spring and complete six months of training in Taiwan.

Soaring Rental Demand

As mentioned above, securing housing for workers is an urgent issue. Land prices in Kikuyocho, where TSMC is constructing, have been rising rapidly since last year, and the rate of increase in industrial land prices is the highest in Japan at 31.6%. Agricultural land accounts for most of the land in Kikuyo Town. Moreover, more than 80% of the land is designated as an urbanization control zone, a zone where development is restricted, and the town faces the problem of having little land on which to build condominiums. Local real estate companies have been making house calls to sell or lease land, but in many cases they have been turned down.

Influence of the Semiconductor Bubble on Village House

Due to the demand for semiconductors in Kumamoto Prefecture, Village House Tatsuta and Village House Shichijo, two of the three properties we manage in the northern part of Kumamoto Prefecture, have received a lot of demand from people who work for companies related to the semiconductor manufacturing industry. We accept and promote corporate housing for singles, families, room sharers, welfare recipients, and foreign nationals. There is no security deposit, key money, or key money (depending on the screening process), no guarantee fee, no key change fee, and no extra incidental items.

Please feel free to contact Village House when you move in.