Where to invest in Japan's local regions

KumamotoActive in Attracting Foreign Companies

We have abundant groundwater eminent in the world!

Kumamoto supports the establishment of your business with every effort!

Semiconductor Kingdom nurtured by abundant groundwater !-Agglomeration of automobile, food, and service industries-

Regional News

Contact

Industrial Recruitment & Location Division, Kumamoto Prefectural Government

6-18-1 Suizenji, Chuo-ku, Kumamoto-city, Kumamoto Prefecture, 862-8570


Basic information

Population *1

1786 thousand

Labor force *1

873 thousand

Nominal GDP*2

6,122.4 billion yen

Number of Establishments*3

74,104 establishments

JETRO office
  1. *1

    Population Census 2015, Ministry of Internal Affairs and Communications

  2. *2

    Prefectural Citizens'Economic Accounts 2018, Cabinet Office

  3. *3

    "2016 Economic Sensus", Statstics Bureau, Ministry of Internal Affairs and Communications

Basic information updated on:Jan. 2022

Business Environment

Kumamoto is a "Land of Water" blessed with over 1,000 spring water.

A total of eight locations, the highest number in Japan, were selected for the "100 Exquisite and Well-conserved Waters" of the Showa or Heisei Period. 100% of tap water in Kumamoto City comes from groundwater.

With these high-quality and abundant water resources, semiconductor-related companies have settled in the area for over 50 years. Today, more than 100 of Japan's leading semiconductor manufacturing plants and semiconductor-related companies operate here. Also, automobile-related industries agglomerate. Hence the region is one of Kyushu's most prominent industry clusters, also known as Silicon Island and Car Island.

In addition to companies that have established operations here, supporting local companies have world-class advanced technological capabilities. This setting has led to each company's success in the global market and is a great attraction to operate in Kumamoto. Besides semiconductors and automobile-related industries, food-related industries that leverage the strengths of an agriculture prefecture, logistics-related industries that take advantage of the central location in Kyushu, and IT-related and office-related companies are accelerating their expansion into Kumamoto.

Incentives

Kumamoto Prefectural Subsidies for Promoting Establishment of Business Facilities (foreign companies)

Subsidies

Subsidy amount [maximum: 150 million yen]:
5% of investment amount + 0.5 to 0.7 million yen times the number of new employees
The amount of subsidy per employee is commensurate with the number of new employees.

Subsidy target:
Manufacturers with foreign ownership exceeding 50% (there are no requirements for investment amount or the number of new employees)

Kumamoto Prefectural Subsidies for Promoting Establishment of Business Facilities (large-scale investment companies)

Subsidies

Subsidy amount [maximum: 5 billion yen]:
8 to 15% of investment amount + 0.5 to 0.7 million yen times the number of new employees
The amount of subsidy per employee is commensurate with the number of new employees.

Subsidy target:
Companies investing 20 billion yen or more and hiring 200 or more new employees.

Kumamoto Prefectural Subsidies for Promoting Establishment of Business Facilities (semiconductor and automobile-related industries, etc.)

Subsidies

Subsidy amount [maximum: 1.5 billion yen]:
3 to 5% of investment amount + 0.5 to 0.7 million yen times the number of new employees
The subsidy rate for the investment amount and the subsidy amount per new employee are commensurate with the investment amount and the number of new employees.

Subsidy target:
Companies investing 300 million yen or more and hiring 5 or more new employees.

Industrial cluster information

Semiconductor-related industries

Kyushu, nicknamed "Silicon Island," accounts for about 1/4 of semiconductor production in Japan. Kumamoto Prefecture, located in the prefecture center, is a large-scale cluster of the semiconductor industry. More than 100 of Japan's leading semiconductor manufacturing plants and semiconductor-related companies operate here.

Local companies

Sony Semiconductor Manufacturing Corporation, Tokyo Electron Kyushu Limited, Mitsubishi Electric Corporation, Renesas Semiconductor Manufacturing Corporation, Ebara Corporation

Educational/research institutes of the industry

Kumamoto University (with approximately 500 graduates from engineering departments every year), the Kumamoto Industrial Support Foundation (carrying out a wide range of projects, including research and development and human resource development), the Kumamoto Prefecture Industrial Technology Center (implementing initiatives aimed at becoming the department of technology in the prefecture based on the concept of "salable manufacturing"), Kumamoto Prefectural Technical College (producing approximately 100 technicians each year, a small and elite employment rate of 100% each year, and a high evaluation from companies in the prefecture), the Kumamoto High School of Technology (with approximately 300 graduates each year)

Others

Kumamoto Industrial Support Foundation

Transportation equipment related industries, including automobiles.

Toyota, Nissan, and Daihatsu, with automobile assembly plants in the northern Kyushu region, have successively increased production to their aggregate annual production capacity in Kyushu of 1410000 units. Consequently, many auto parts related companies have set up operations in Kumamoto, propping up Kyushu's auto industry.

Local companies

Honda Motor Co., Ltd. Kumamoto Factory, Aisin Kyushu Co., Ltd., Aisin Kyushu Casting Co., Ltd., AT Kyushu Co., Ltd.

Educational/research institutes of the industry

Kumamoto University (with approximately 500 graduates from engineering departments every year), the Kumamoto Industrial Support Foundation (carrying out a wide range of projects, including research and development and human resource development), the Kumamoto Prefecture Industrial Technology Center (implementing initiatives aimed at becoming the department of technology in the prefecture based on the concept of "salable manufacturing"), Kumamoto Prefectural Technical College (producing approximately 100 technicians each year, a small and elite employment rate of 100% each year, and a high evaluation from companies in the prefecture), the Kumamoto High School of Technology (with approximately 300 graduates each year)

Others

Kumamoto Industrial Support Foundation

Food, Pharmaceuticals industries

In Kumamoto Prefecture, which is blessed with a rich natural environment, universities and research institutes are conducting excellent research and development in medical, food, and environmental fields, which are deeply related to biotechnology. Companies and organizations are actively developing their businesses, too.

Local companies

Suntory Brewery Co., Ltd., KM Biologics Co., Ltd., LSI Medience Co., Ltd., Dojindo Laboratories

Educational/research institutes of the industry

Kumamoto University's Institute of Molecular Embryology and Genetics (promotes integrated research on life sciences and medicine from an emergent perspective), Kumamoto University's Institute of Resource Development and Analysis (life sciences research and supplying research resources), Sojo University's Faculty of Biology, Applied Life Sciences (education on life sciences), Kumamoto Industrial Support Foundation (implementing projects in a wide range of fields, including research and development and human resource development in cooperation with industry and implementing projects in cooperation with academia and the government), Kumamoto Medicine-Manufacturing Partnership Promotion Organization (network for promoting the development of medical devices, etc.)

Others

Kumamoto University Institute of Resource Development and Analysis

Living environment

Located in Kyushu's center, Kumamoto Prefecture is home to two national parks - the Aso Kuju National Park, which includes the magnificent Aso mountains with its world-class caldera, and the Unzen Amakusa National Park, which consists of 120 large and small islands. The prefecture is blessed with beautiful nature with mountains and oceans.
On the other hand, in urban areas, creative reconstruction from the Kumamoto Earthquake has been accelerating. Sakuramachi Kumamoto, a large-scale commercial facility that will serve as a new symbol in the central part of Kumamoto City, opened in September 2019. The new Kumamoto train station building will be completed in April 2021.
In addition to an extensive medical system and a low crime rate, hot springs (Kumamoto ranks the nation's fifth in terms of the number of springs) and more than 40 reasonably-priced golf courses await you!

Logistics and infrastructures

Kumamoto Prefecture is located in the center of Kyushu, which is close to Asia. It is an ideal location as a development and production base in Asia for targeting East Asia and Chinese markets. Kumamoto Port and Yatsushiro Port, the two major ports of Kumamoto, handle container liners to Busan Port, South Korea, which has grown as one of the world's leading hub ports.
In addition to export and import to and from Asia, access to Europe, North America, and other parts of the world is available via Busan Port. In January 2021, container liner service to Taiwan from Yatsushiro Port will start.

Air:
Domestic flights: 90 minutes to Tokyo (18 flights per day), 65 minutes to Osaka (10 flights per day), and 75 minutes to Nagoya (5 flights per day)
International flights: 85 minutes to Seoul (4 flights per week), 150 minutes to Kaohsiung Taiwan (3 flights per week), and 190 minutes to Hong Kong (3 flights per week)
28 domestic cities and 22 overseas cities are accessible via Fukuoka Airport (about 1 hour by car from Kumamoto) as of December, 2020.

Shinkansen:
33 minutes to Hakata, 44 minutes to Kagoshima, 2 hours and 58 minutes to Shin-Osaka

Car:
90 minutes to Fukuoka, 100 minutes to Saga, 130 minutes to Kitakyushu, 140 minutes to Kagoshima, 145 minutes to Miyazaki, 150 minutes to Nagasaki, and 180 minutes to Oita

Map of Kumamoto

Support

In Kumamoto Prefecture, we have substantial preferential measures to back up foreign-affiliated companies establishing operations here, and we offer more favorable support than for domestic companies. We provide a subsidy to cover 5% of the investment amount for new construction or expansion without any conditions for the investment amount or the number of employees. After your business settles in Kumamoto, we will do our best to provide support to solve your various problems. Furthermore, after establishing a business here, you can use "Kumamon" (a popular local mascot character) to the fullest extent. Among foreign companies, major semiconductor inspection equipment manufacturers, Teradyne in the U.S., and others have established operations in Kumamoto.

Active in Attracting Foreign Companies

*Local governments that are active in attracting foreign-affiliated companies" are the local governments that are active in bringing in foreign companies in JETRO's support program. For details, please refer to the support program pages.

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