According to a Nikkei Shimbun article on October 15th, as Kyushu’s industrial landscape grows, private companies are taking the lead in developing much-needed industrial land, spurred by the arrival of Taiwan Semiconductor Manufacturing Company (TSMC) and the region’s burgeoning industrial cluster.
With demand surging, local governments are welcoming private sector participation, offering incentives to accelerate land development.
Collaboration Between Private and Public Sectors
In 2023, Kumamoto City signed a landmark agreement with a joint venture consisting of Fukuoka Jisho, Hayashi Warehouse, and Joint to collaborate on industrial land development.
The project, centered around key transport hubs like interchanges and Kumamoto Airport, aims to complete 48 hectares of industrial land by 2026.
"This agreement represents a close partnership between the private and public sectors," explained Machiko Wakisaka, Director of Kumamoto’s Corporate Location Promotion Division.
While private developers handle site selection and acquisition, the government focuses on easing land-use regulations, such as floor area ratios and building coverage, to streamline the process.
TSMC’s Impact on Kumamoto’s Industrial Growth
Since the establishment of TSMC’s factory in Kikuyo, Kumamoto has seen a surge in semiconductor-related businesses.
The city, responding to an influx of inquiries from companies interested in setting up operations, estimated in 2022 that the demand for industrial land could reach 101 hectares.
To avoid missing out on key opportunities, securing additional land has become a critical priority.
Private Sector Fills Development Gaps
Traditionally, industrial land development has been driven by local governments, which handle the often-complex negotiations with local stakeholders.
However, many municipalities lack personnel with the necessary expertise, causing delays in land development.
In fact, a survey by the Ministry of Economy, Trade, and Industry found that nearly 80% of municipalities across Japan cited a lack of experience in handling industrial land projects.
Unlike government-led projects, which require budget approvals, private real estate companies can bypass lengthy administrative procedures, allowing for faster execution.
Kita-Kyushu’s Ambitious Land Development Plan
Kita-Kyushu City launched its "Corporate Attraction Acceleration Plan" in July, aiming to foster industrial land development through private sector involvement.
By leveraging the Regional Future Investment Promotion Act, the city plans to convert agricultural land and create 20 hectares of industrial land by 2028.
Kita-Kyushu, home to major semiconductor and automotive industries, recorded a record-high 91 new business locations in FY2023.
The city’s new initiative has already attracted 20 inquiries, with officials expressing optimism that this growth will lead to job creation and stimulate local economic activity.
Growing Momentum Across Kyushu
The industrial land boom isn’t limited to Kumamoto and Kita-Kyushu.
In Saga Prefecture’s Tosu City, companies like Tokyu Land, Nippon Road, and Marubeni are collaborating on the "Southern Tosu Cross Park" project.
Meanwhile, cities like Higashi-Sonogi in Nagasaki and Miyakon-Ojo in Miyazaki are actively recruiting private developers and offering financial support to encourage industrial land projects.
Source:
Nikkei Shimbun (Japanese only; paywalled)
