Kyushu Electric Power Increases Substation Power Capacity Including Transformer Installation
Transmission Line for TSMC Factory Newly Established Last Year and Already Operational
Japan's Kyushu Electric Power is rapidly reinforcing its power supply in line with Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) company, which is building a factory in Kumamoto Prefecture. While major domestic semiconductor companies such as Samsung Electronics and SK Hynix are facing challenges in establishing the power grid for the Yongin semiconductor cluster, Japan is actively working on building semiconductor supply chain infrastructure, including power supply.
The Nihon Keizai Shimbun reported on the 11th that Kyushu Electric Power is focusing on securing the necessary power for building the semiconductor supply chain by investing more than 10 billion yen (approximately 87.6 billion KRW) to reinforce two substations and establish dedicated transmission lines for large corporations. Semiconductor factories are considered representative facilities with high power consumption, alongside data centers and steel mills. Given that semiconductor factories operate 24 hours a day, 365 days a year, a stable power grid is essential.
Kyushu Electric plans to expand transformers at some substations in Kumamoto, with some scheduled to be operational by June next year and others by 2027. The additional installation of transformers at the two substations is expected to increase power capacity by 1.24 million kilowatts. Kyushu Electric established a dedicated transmission line for the TSMC Kumamoto factory in June last year and has been supplying power to the first plant, which began operations in February.
Kyushu Electric started investigating the transmission line expansion in May 2021 and completed the expansion within two years. Considering that TSMC first announced in October 2021 its plan to build a factory in Kumamoto, it is interpreted that Kyushu Electric and Kumamoto recognized the need to reinforce power supply ahead of related discussions with TSMC.
A Kyushu Electric official explained, "We are designing (the power grid) based on TSMC's information," adding that the power usage for the second plant, scheduled to start operations in 2027, is also included. The official further stated, "The customer strongly requested it, and with the support of local governments, we shortened the construction period as much as possible," adding, "The combined facility investment for reinforcing the two substations exceeds 10 billion yen."
In addition to the TSMC factory, Kyushu Electric plans to review transmission line expansion applications from related partner company factories. As the semiconductor supply chain is newly established throughout Kyushu, Kyushu Electric has left open the possibility of establishing new transmission lines for related companies outside Kumamoto Prefecture. The company also noted that inquiries for data center construction continue, indicating recognition of the need for related power grids.
A Kyushu Electric official said, "Power demand in Kumamoto Prefecture alone is expected to increase by several hundred thousand kilowatts by 2027," adding, "Although the population of Kumamoto Prefecture is expected to decline, leading to decreased household power consumption, demand related to semiconductors and data centers will be significant."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
