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Regional Information Kumamoto

Kumamoto, one of Japan’s largest semiconductor centers

Your Regional Guide : Yoko Matsushima

  • Inquires about investment in Japan.

Industrial Recruitment & Location Division, Kumamoto Prefectural GovernmentExternal site: a new window will open.

6-18-1 Suizenji, chuo-ku, Kumamoto-city, Kumamoto Prefecture 862-8570
Tel: +81-96-333-2330 Fax: +81-96-385-5797
kigyouricchika@pref.kumamoto.lg.jp

Kumamoto

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  • Please note that inquires not regarding investment in Japan may not be answered.

The information below is as of January 2017.

Basic Information

Population *1 1.78 million
Labor force *1 0.86 million
Area *2 7,409.4 km²
GDP *3 5,566,376 million yen
Major industries Electrical equipment, transportation equipment, food and beverage products, general equipment and metal products
Wage *4
Initial wage for university graduates(Average)
193,000yen
Initial wage for college of technology/junior colledge graduates (Average)
160,700yen
Initial wage for upper secondery school graduates (Average)
153,800yen
Scheduled cash eanings (Average)
259,000yen
Land price(for 1m²) *5
Land price for industrial use (Average)
11,800yen
Land Price for Commercial Use (Average)
111,400yen
Number of Establishments *6 79,219
Number of Employees *6 701,614
Offices overseas

Shanghai ,China HongKong ,China
Singapore
Chungnam,Korea

JETRO office

JETRO Kumamoto

Regional Profile

Strength of the region's industries and economy

Kumamoto Prefecture has been attracting companies in the semiconductor industry for 50 years and those in the automobile industry, forming the clusters known as “Silicon Island” and “Car Island” and showing a strong presence in the Kyushu region. Companies developing business in the prefecture and local companies bolstering these companies boast quality, world-class techniques, leading to the development of global business. In addition, the prefecture has also been attracting food-related industries taking advantage of the strong points of Kumamoto Prefecture, an agricultural prefecture, and distribution-related industries taking advantage of the geographical center of the Kyushu region. This contributes to forming new clusters of these industries.

Foreign company(s) operating in the industry

Company name Teradyne, Inc.External site: a new window will open.
Industry sector

Electrical measuring instrument (Semiconductor Inspection Equipment)

Motivation for selecting region
  • Kumamoto Prefecture introduced our company to Kumamoto University and other universities around Kyushu, while the services of “U-turn advisors” (counseling for persons returning from other regions to work in their hometowns) helped make it possible to hire excellent technical personnel.
  • The ability to use rented plants.
  • Locations extremely close to the airport, low housing expenses.
Support provided by local government or JETRO

Introductions to universities and other personnel hiring support.

Comments

“Allow me to explain why we chose Kumamoto, and why we continue to be confident that, to Teradyne, the selection of Kumamoto was a sound decision.
First of all, Kumamoto Prefecture did not only stress that it was prepared to accept foreign companies, but also carried out active efforts to attract such firms.
The second reason concerns human resource recruiting. One of the major motives in choosing Kumamoto was our thinking that this region would make it possible to hire technicians. From the very start, Kumamoto Prefecture introduced us to professors from Kumamoto University, Kyushu University, Kyushu Institute of Technology.
On a related front, Kumamoto Prefecture moved from early on to set up a 'U-turn' center. In other words, the prefecture opened an office in Tokyo, which can be visited by Kumamoto natives who gain employment in other prefectures but want to return to Kumamoto. At this office, they can make contact with prospective Kumamoto employers.
Another advantage of Kumamoto, which has provided relief in various meanings of the word, is the low price of our housing expenses for employees.
Yet another merit of Kumamoto is the extremely close access to the airport. The airport here is also an international airport, providing fights not only to destinations around Japan but to South Korea and other points in Asia as well. Add to this the fact that Kumamoto is only a 90-minute flight from Tokyo's Haneda Airport. In a certain sense, therefore, maintaining a base in Kumamoto places us closer to Tokyo time-wise than if we had a business location in other districts around the Kanto region.” (From a March 14, 2000 interview with Richard Dyke, former representative director of Teradyne Inc.)

Available incentives

Subsidies are available to companies establishing new plants or research centers (or expanding existing facilities) in the prefecture, setting requirements advantageous to foreign-affiliated companies.

Incentive name

Guidance of Kumamoto local firm location promotion subsidy

Outline of Incentives (Requirements etc.)

- Subsidies based on the calculation result under the formula of “investment value × 5% + 500,000 yen × new employees.” (up to 150 million yen), targeting companies with more than 50% foreign capital in the total capital in: 5 target industries (semiconductors, mobility, green, food-and-life, and social systems); R&D businesses in specified fields; and general manufacturing industries

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