Three Gears Starting to Turn Simultaneously

A semiconductor manufacturing facility is being constructed, an automobile manufacturer is gathering talent for electrification, and a university is supplying knowledge—these three gears, which have been operating in separate contexts, are now beginning to mesh together in the city of Higashihiroshima.

The groundbreaking of Micron’s new facility, Mazda’s large-scale hiring plan, and the transition to a core city. If we look at each piece of news individually, it might end up as just a “bright topic for the region.” However, when we put the three together, what emerges is a larger question about the transition to a city with its own industrial structure, distinct from being merely a bedroom community or satellite city of Hiroshima.

“Who benefits from this?”—Let’s explore the numbers related to employment, tax revenue, and population from this perspective.

—

Micron’s New Facility—What the ‘Mass Production Base for Cutting-Edge Memory’ Means

Micron Technology is advancing the construction of a new manufacturing facility at its Hiroshima plant in Higashihiroshima, which will incorporate EUV (Extreme Ultraviolet) lithography equipment. This facility will be responsible for the mass production of cutting-edge DRAM, with total investments expected to reach several hundred billion yen, backed by a government subsidy decision of approximately 500 billion yen. Micron’s CEO Sanjay Mehrotra stated at the groundbreaking ceremony, “Japan is at the core of our global manufacturing network.”

This statement indicates that Higashihiroshima is not just the location of a single factory but is positioned as a hub in the global supply chain. The manufacturing of advanced semiconductors requires surrounding industries such as equipment manufacturers, material suppliers, inspection, and logistics. If the accumulation of related supply chain companies progresses alongside Micron’s direct employment, the economic ripple effects on the region could multiply several times beyond the number of direct jobs. According to estimates by the Ministry of Economy, Trade and Industry, the economic ripple effects of locating a semiconductor factory often reach two to three times the amount of direct investment.

Notably, this facility will focus on memory—products that demand “quantity.” While TSMC’s Kumamoto plant will handle logic semiconductors, Higashihiroshima will take on the advanced manufacturing of memory, forming a geographical division of labor in semiconductor production within Japan. The vision of Kumamoto and Higashihiroshima, two regional cities becoming the twin engines of Japan’s semiconductor resurgence, is a picture that few had imagined until recently.

—

Mazda Hiring 630 People—The Shift to Electrification is Redrawing the Regional Employment Map

Mazda has announced a hiring plan for a total of 630 people, including 385 new graduates for the 2027 fiscal year and 245 career hires for the 2026 fiscal year. This represents an approximately 20% increase in new graduate hires compared to the previous year. Keywords such as electrification, CASE (Connected, Autonomous, Shared, Electric), and carbon neutrality are prominent, but conversely, this also indicates a structural change: “We can no longer rely solely on traditional engine engineers.”

Mazda’s headquarters is located in Fuchu Town, Aki District, Hiroshima City, but its supply chain extends widely, including Higashihiroshima. Parts manufacturers, mold makers, logistics hubs—Mazda’s increase in hiring will have a ripple effect on employment in these supporting industries. As of 2024, the effective job openings-to-applicants ratio in Hiroshima Prefecture is around 1.3, but the labor shortage is even more severe in the manufacturing sector. The figure of 630 people holds significant attraction for the local labor market.

What cannot be overlooked here is the changing profile of the talent Mazda seeks. Software, battery control, data analysis—these require expertise that differs from traditional mechanical engineering. The presence of Hiroshima University’s Faculty of Engineering and Faculty of Information Science in Higashihiroshima serves as a source for this talent. The physical proximity from university research labs to factory floors could provide a structural advantage in both recruitment and training.

—

Transition to Core City—Testing the ‘Self-Driving Power’ of Administration

Higashihiroshima City is preparing for its transition to a core city. Once designated as a core city, approximately 2,500 administrative tasks, including the establishment of health centers and the delegation of welfare service authority, will shift from the prefecture to the city. This will speed up administrative processes, allowing the city to attract businesses and respond to foreign residents based on its own judgment.

Mayor Hironori Takagaki’s vision of an “internationally connected regional hub” is predicated on this delegation of authority. The ability of the city to directly design the residency procedures for the increasing number of foreign engineers due to Micron’s expansion, multilingual administrative services, and the establishment of international schools and living environments—whether these can be designed without going through the prefecture will directly influence companies’ decisions to maintain and expand their bases.

Currently, Higashihiroshima City has a population of approximately 190,000. While it does not yet meet the core city requirement of 200,000, there are movements aiming for the transition based on the relaxation of requirements due to legal amendments and the actual accumulation of urban functions. If this coincides with an influx of population due to increased employment in the semiconductor and automobile industries, the numerical barrier could realistically be overcome.

—

The Overlapping Structure—Reading the Content of the ‘Meshing’

Semiconductors, automobiles, and universities. The mere existence of these three in the same city may be a coincidence. However, the simultaneous acceleration of their movements indicates a structural inevitability.

The miniaturization of semiconductors is intrinsically linked to the electrification and intelligence of automobiles. The enhancement of performance in automotive semiconductors used for EV control is inseparable from the increase in memory capacity. The advanced DRAM that Micron manufactures in Higashihiroshima primarily serves data centers, but the demand for automotive memory is expected to surge in the future. The fact that Mazda’s supply chain and Micron’s manufacturing base exist within the same economic zone lays the groundwork for future technological collaboration.

Hiroshima University serves as a source of talent and knowledge that connects these elements. Research on semiconductor materials, control technologies for electric vehicles, and data science—if the talent produced by the university finds employment locally and addresses local challenges as research subjects, a cycle of “working in the city where you learned” will strengthen.

This triangular structure cannot exist if any one part is missing. A semiconductor factory alone would remain a “factory town.” An automobile manufacturer alone would merely extend the existing Hiroshima area. A university alone would lead to students flowing out after graduation. Only when the three overlap can we see a mechanism where people stay, technology circulates, and tax revenues accumulate.

—

Viewing ‘Feasibility’ and ‘Unseen Risks’ Through Numbers

Simply presenting optimistic figures would not be honest as an editor. We must consider both feasibility and risks.

Employment: Direct employment from Micron’s new facility is expected to gradually expand, but the automation rate in semiconductor manufacturing is high, which may limit the number of jobs relative to the scale of the factory. Rather, the ripple effects—indirect employment in equipment maintenance, logistics, and the food and service industries—will significantly influence the regional economy. Mazda’s hiring of 630 people does not mean that all will reside in Higashihiroshima. We need to view the effects as part of a broader area that includes commuting zones from Hiroshima City and Kure City.

Tax Revenue: Higashihiroshima City’s tax revenue was approximately 33 billion yen in the fiscal year 2022 (total of resident tax, fixed asset tax, etc.). While an increase in fixed asset tax due to the capital investment of the semiconductor factory is certain, large-scale investments also come with financial burdens as a result of tax reductions and subsidies. Simple forecasts like “tax revenue will double” blur the line between fact and speculation. The scale of increased revenue will be heavily influenced by the factory’s operating rate and the semiconductor market conditions.

Population: According to the 2020 national census, Higashihiroshima City has a population of approximately 192,000. It ranks fourth in Hiroshima Prefecture, following Hiroshima City, Fukuyama City, and Kure City, but as Kure City continues to experience population decline, it is effectively becoming the third urban area in the prefecture. However, to achieve population growth, it is essential to improve not only employment but also living environments, education, and healthcare. The establishment of health centers due to the transition to a core city is a step in that direction, but attracting international talent will require diligent work in developing infrastructure for multicultural coexistence.

—

What Does ‘Another Hiroshima’ Mean?

I would like to question the very framing of the question, “What is ‘Another Hiroshima’?”

Higashihiroshima should not aim to be a scaled-down version of Hiroshima City or a competing axis. Rather, it should play a role in diversifying the industrial structure of Hiroshima Prefecture by taking on functions that Hiroshima City does not have—such as the concentration of advanced manufacturing, proximity to universities, and an international community of engineers.

Just as Kumamoto is regaining its title of “Silicon Island” with the entry of TSMC, Higashihiroshima has the potential to establish its unique position as the forefront of memory manufacturing. However, what the Kumamoto case teaches us is that rapid industrial concentration can lead to “growing pains” such as soaring land prices, traffic congestion, and strained water resources. To avoid following that path, the ability of the administration to design the structure of growth rather than just the speed of growth will be put to the test.

With the new semiconductor facility being built, automobile manufacturers gathering talent, and universities cultivating knowledge, whether these three gears will mesh is still uncertain. What is certain is only the fact that all the gears are placed on the same ground.

What will prepare that ground is not a flashy groundbreaking ceremony, but rather the expansion of childcare facilities, the reorganization of bus routes, and the establishment of schools that foreign engineers’ children can attend. When the system supports people, and people operate the system—that cycle will quietly begin to move, and Higashihiroshima will become a city referred to by its own proper name, rather than simply being called ‘Another Hiroshima.’