A recent survey has shown that the number of companies doing business related to Taiwan Semiconductor Manufacturing Co. in Japan rose by 10.3% compared to two years ago, thanks to a steady expansion of the firm's supply chains in the country.

However, despite being the home of TSMC’s new factory, the Kyushu region is facing hurdles against expanding its semiconductor-related transactions partially because of the high barriers to entry into the industry.

According to the survey, released by Teikoku Databank on Wednesday, 471 companies are now doing business with TSMC group companies and Sony Semiconductor Manufacturing Corporation, one of the largest shareholders of TSMC’s entities in Japan. The number was 427 at the time of the last survey in November 2021, when TSMC unveiled plans for a production plant in Kumamoto Prefecture in Kyushu.