Kagoshima Airport Assessing Impact Of New Semiconductor Plants

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New Delhi, February 28, 2024: Kagoshima Airport (KOJ) in Japan is assessing the potential impact on its cargo operations as a second TSMC semiconductor plant is expected to be built in neighboring Kumamoto, although the airport has not made any immediate plans to increase its cargo-handling capability.

TSMC opened its first fabrication plant in the city on Feb. 24, as the chip giant diversifies outside of its home in Taiwan. Construction of a second plant is expected to begin by the end of the year.

KOJ general manager Kazuhisa Arimura told Routes that, as the chips are primarily for domestic use within Japan, the airport has not seen major demand for flights supporting semiconductor shipments. However, as Kagoshima-based companies will also support TSMC in the supply chain, he expects an uptick in downstream activities.

Semiconductor warehouses are under construction, he said, but KOJ has no immediate plans to expand its cargo-handling capacity. Kyocera and Sony both operate chip plants in Kagoshima, and Arimura said he hopes there will be collaboration between them and TSMC, which will help generate cargo flows according to the reports published in aviationweek.com .

Arimura said the airport’s priority now is to attract airlines and passengers from Thailand and Vietnam, after the recovery and return of key market China did not proceed as planned due to poor outbound demand from the mainland.