Kagoshima Airport Monitors Semiconductor Plant Developments for Cargo Impact

Kagoshima Airport (KOJ) in Japan is closely monitoring the potential effects on its cargo operations stemming from the construction of a new TSMC semiconductor plant in the neighboring Kumamoto region. With TSMC, a leading semiconductor manufacturer diversifying its operations outside Taiwan and opening its first plant in Kumamoto on February 24, a second facility’s construction is anticipated to begin by the end of this year.

Despite these developments, KOJ’s general manager, Kazuhisa Arimura, mentioned that the airport has not yet planned any immediate enhancements to its cargo-handling capabilities. This decision stems from the expectation that the chips produced will mainly serve domestic needs within Japan, which so far has not significantly increased demand for semiconductor shipments via Kagoshima Airport.

However, with Kagoshima-based companies poised to play supportive roles in TSMC’s supply chain, an increase in downstream activities is expected. While semiconductor warehouses are currently being constructed, KOJ remains watchful, anticipating future cargo flows that may arise from potential collaborations between TSMC and existing Kagoshima chip manufacturers like Kyocera and Sony.

In the meantime, Kagoshima Airport is focusing its efforts on attracting airlines and passengers from Thailand and Vietnam, aiming to diversify its international connections. This strategic pivot comes after the anticipated recovery and return of the Chinese market did not materialize as expected due to weak outbound demand from mainland China.