Decision Factors Affecting Semiconductor Industry Location and the Regional Advantages of Kumamoto Prefecture, Japan

Decision Factors Affecting Semiconductor Industry Location and the Regional Advantages of Kumamoto Prefecture, Japan

The objective of this paper is to pinpoint the key determining factors that managers in multinational semiconductor firms use to decide upon a location to expand their business. Interviews were conducted with seventeen executives at eight companies, at both the U.S. and Japanese headquarters. Based on these interviews, the author analyzed the data to determine the strengths and weaknesses of Japan’s Kumamoto Prefecture, in particular, as a semiconductor investment location. One important research finding is an assessment of these strengths and weaknesses, their importance to foreign executives, and how Kumamoto can capitalize on them in order to attract more business to the region.