Japanese Prime Minister Shigeru Ishiba announced a $65 billion plan to support Japan’s semiconductor and artificial intelligence sectors through subsidies and financial incentives. The initiative, targeting domestic chip production, aims to strengthen Japan’s supply chain independence amid global tensions, particularly between the United States and China. Expected to total over 10 trillion yen by fiscal 2030, the plan will be presented in the upcoming parliament session. It includes provisions for next-generation chip production and specifically supports Rapidus, a chip foundry aiming to produce advanced semiconductors by 2027 in Hokkaido with IBM and Imec.
The draft plan, anticipates an economic impact of approximately 160 trillion yen. Additionally, the government announced that it would not issue deficit-covering bonds for funding, though it did not provide alternative financing details. Japan’s latest economic package, to be approved on November 22, will allocate 50 trillion yen in joint public and private investment over the next decade, reflecting an ongoing commitment to chip manufacturing. In conjunction with this announcement, Ishiba stated that discussions with business and labor representatives will begin this month to address wage negotiations amid rising living costs impacting household spending.
Featured image courtesy of The Japan Times
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