Taiwan Semiconductor's Expansion Spurs Luxury Market in Kumamoto: Report
Taiwan Semiconductor Manufacturing (NYSE:TSM) is ramping up production at its first Japanese plant, drawing attention from local department stores eager to cater to the incoming executives.
Tsuruya Department Store in Kumamoto is one such retailer.
It boosts its luxury offerings, including fine wines and designer bags, to attract high-spending visitors.
The influx of executives and their families will likely grow, creating a surge in demand for premium goods, the Nikkei Asia reports.
Taiwan Semiconductor’s new plant in Kikuyo is nearing full production, leading to a relocation of approximately 750 employees and their families to Kumamoto, with thousands more anticipated.
The movement has prompted Tsuruya to create a dedicated section for luxury wines like Chateau Latour and Chateau Lafite Rothschild, with bottles priced up to 200,000 yen ($1,300).
These high-end items are reportedly purchased in significant quantities by executives from Taiwan Semiconductor and related companies.
Tsuruya has formed a special task force to prepare for the semiconductor company’s growth.
As more workers relocate, the demand for home appliances, bed blankets, and other items is increasing.
The yen depreciation has also boosted cosmetics, watches, and bags sales, with duty-free items accounting for 2% of total sales in April, doubling from the previous year.
Prior reports indicated Taiwan Semiconductor could bag government sanctions for an additional $10.26 billion to finance the construction of its second fab in Kumamoto, Japan, using advanced process technologies.
Price Action: TSM shares were trading higher by 0.69% at $187.91 premarket at the last check on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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