Nagasaki Prefecture Unveils Semiconductor Industry Cluster Plan, Aiming for ¥1 Trillion in Industry Sales

Nagasaki Prefecture has announced the outline of its "Regional Industry Cluster Plan for Semiconductor-Related Fields," centered on semiconductor manufacturing and semiconductor manufacturing equipment. The prefecture will focus on Isahaya City and Omura City, where semiconductor device companies are concentrated, and link local enterprises in devices, materials, semiconductor manufacturing equipment and components, and metal processing to build a semiconductor-related industry supply chain.

Goals and Background

The plan sets targets of ¥70 billion in combined public-private equipment investment, ¥90.4 billion in added value over five years, and the securing and training of 1,783 industry personnel. Nagasaki is home to device and material companies with high global market shares, and new plant construction is underway; however, the number of semiconductor-related companies is small, inter-company transactions within the prefecture are limited, and the prefecture faces issues such as shortages of engineers and skilled workers and the need to secure large industrial sites and water resources. The prefecture will integrally promote investment attraction, upgrading and new entry of local companies, talent development, and infrastructure development to promote the clustering of semiconductor-related industries and drive the prefectural economy.

Extending Shipbuilding Metal Processing Technology to Manufacturing Equipment

In cluster formation, Nagasaki plans to extend the metal processing technology accumulated by local companies in shipbuilding and other industries to semiconductor manufacturing equipment and related components. Semiconductor manufacturing equipment uses large amounts of metal parts requiring high processing precision, cleanliness, and durability. By encouraging local processing companies to enter the equipment component and peripheral equipment manufacturing fields, the prefecture aims to expand the semiconductor industry base. Basic strategies include attracting anchor companies centered on the manufacturing equipment field, promoting the expansion and upgrading of existing companies, building an industrial structure in which anchor companies place orders with local companies, and promoting industry-academia-government talent development in cooperation with the Nagasaki Semiconductor Network.

Investment Attraction and 21 Core Companies

Regarding investment attraction, Nagasaki proposes bringing semiconductor manufacturing equipment makers and others with large ripple effects into prefectural industrial parks, led by the "(provisional name) Higashisonogi Town Industrial Park," and utilizing renewable energy such as offshore wind power and the national GX (green transformation) strategic region system. Over the past five years, Nagasaki has provided about ¥7.7 billion in support to the semiconductor field and will continue to support companies establishing new bases, local companies' equipment investment, and talent development.

The plan positions 21 local companies as cluster cores, including SUMCO TECHXIV, which produces semiconductor silicon wafers, and Shinwa Controls, which makes precision temperature control equipment for semiconductor manufacturing. Centered on Isahaya City and Omura City, it will connect companies in Nagasaki City, Sasebo City, Matsuura City, Unzen City, Nishisonogi District, and Higashisonogi District to build a supply chain covering materials, devices, manufacturing equipment, components, and services.

Targeting ¥1 Trillion in Sales with a KPI Review Mechanism

Nagasaki aims to raise semiconductor-related industry sales within the prefecture to ¥1 trillion through investment attraction, local company growth and new entry, and talent securing and retention. The prefecture will annually verify progress in equipment investment, added value, talent development, investment attraction, and intra-prefectural transactions; if KPIs fall below 70% of target values for three consecutive years, the plan will be re-evaluated, including possible project suspension. Nagasaki said it will combine its existing semiconductor device and material industries with metal processing technology originating from shipbuilding and renewable energy to promote the formation of an industry cluster centered on semiconductor manufacturing equipment.