TAIPEI (Taiwan News) —  Taiwan Semiconductor Manufacturing Company’s (TSMC) Kumamoto plant is estimated to bring NT$2.5 trillion (US$77 billion) to the local economy over the next 10 years, industry sources said.

According to a Kyushu Financial Group report published Thursday (Sept. 5), the economic benefits from the chip industry are nearly double last year’s forecast, per Nikkei Asia. Since November 2021, 171 companies have made new investments in Kumamoto, a significant increase from 90 in a previous analysis, per CNA.

Additionally, wage levels in Kumamoto are expected to increase by 380,000 per capita from the economic impact, per TrendForce. Looking forward, TSMC expects to begin construction of its second plant by the end of 2024 and become operational by 2027.

Kumamoto’s rapid growth is also benefiting from government subsidies. To date, the Japanese government has provided approximately 1.1 trillion yen in subsidies for TSMC’s two plants.

Meanwhile, to address traffic congestion caused by the influx of industrial personnel, the local government plans to build new transportation infrastructure.