Kyushu FG and a regional research institute have released their estimates of the economic ripple effects of electronic device investment in the 3 southern Kyushu prefectures. Based on capital investment and production from 2022 to 2031, the cumulative impact on the regional economy was estimated at approximately ¥13.8 trillion, with an approximately ¥6.9 trillion impact on GRP.
The report covers Kumamoto, Kagoshima and Miyazaki prefectures in southern Kyushu and examines the impact on the regional economy of capital investment and operations and production by companies including JASM. The period covered is 2022–2031, during which total investment is estimated at ¥6.8284 trillion across 276 projects. Kumamoto accounts for 263 projects and ¥5.5959 trillion, Kagoshima for 8 projects and ¥908.4 billion, and Miyazaki for 5 projects and ¥324.1 billion.
The economic ripple effects in the 3 southern Kyushu prefectures, measured from capital investment, are ¥488.17 billion in Kumamoto, ¥80.59 billion in Kagoshima and ¥21.88 billion in Miyazaki, for a total of ¥590.65 billion. Measured from production, they are ¥584.15 billion in Kumamoto, ¥814.5 billion in Kagoshima and ¥1.2857 trillion in Miyazaki, for a total of ¥794.17 billion. The economic ripple effects from capital investment and production combined over the 10-year period are estimated at approximately ¥13.8 trillion. The impact on GRP is ¥329.66 billion from capital investment and ¥363.46 billion from production, for a total of ¥6.9 trillion.
If procurement among the 3 prefectures increases by 1%, the additional ripple effects are estimated at ¥216 billion, with a ¥98.3 billion increase in GRP. The estimated increase relative to nominal GRP in fiscal 2023 is 0.4% in Kumamoto, 0.6% in Kagoshima and 0.9% in Miyazaki, for a combined 0.6%. The report also points out that promoting mutual procurement is important as industrial agglomeration progresses.
In addition to attracting electronic device-related factories and facilities, the 3 prefectures need to increase mutual procurement of materials, components, manufacturing equipment, logistics and maintenance services in order to ensure that the benefits spread throughout southern Kyushu and remain there. Kyushu FG reports that lending to electronic device-related companies through Higo Bank and Kagoshima Bank totaled ¥420 billion cumulatively from April 2022 to September 2026, and that it has supported 41 companies cumulatively in entering the TSMC supply chain.