Authorities in Hokkaido and Kumamoto Prefecture, which currently host construction sites for major chipmaking plants, are confronting shared hurdles for ensuring adequate water supplies crucial for semiconductor production and developing skilled workforces.

With the ambitious projects advancing, the two prefectural governments forged an agreement in August, aiming to facilitate exchanges of information on the various challenges associated with the semiconductor industry and to collaborate on presenting joint requests to the central government for financial assistance to address such issues.

Securing sufficient water supplies is a top priority for semiconductor manufacturers, influencing plant site selection for Taiwan Semiconductor Manufacturing Co. (TSMC), and Rapidus. The anticipated availability of abundant local water resources played a pivotal role in their decision-making process.