Prime Minister of Japan, Shigeru Ishiba, announced a new plan to revive the nation’s chip manufacturing capabilities. According to CNBC, the proposal plans to invest 10 trillion Yen or $65 billion by the end of the fiscal year 2030 in Japan’s semiconductor and artificial intelligence industries. Moreover, according to the country’s local media, the plan will be included in a comprehensive economic package set to be finalised in November, with funding provided through subsidies, investments from government institutions, and debt guarantees.
Shigeru Ishiba mentioned, “We will formulate a new assistance framework to attract more than 50 trillion yen in public and private investment over the next 10 years.” He further states that this is part of a broader revitalisation strategy.
Though the country has lost its hegemony in semiconductor manufacturing, it remains the market leader in certain semiconductor materials and equipment.
Who Will Be The “Winner”?
CNBC mentioned that Rapdius‘ state-backed chip venture will be the major beneficiary of the proposal. The company has already received a government investment of $2 billion for its aim to 2-nanometer logic chips by 2027. Companies use these chips to process information on electronic devices. Moreover, more advanced chips are used in artificial intelligence, quantum computing, and machine learning.
Rapidus chairman Tetsuro Higashi has described the company as Japan’s ‘last chance’ to reclaim a top position in the global semiconductor industry. The company aims to compete with leaders like Taiwan and South Korea.
Global Investors
Alongside the investment, Japan has also rolled out subsidies to attract the global leaders that previously dominated its chip industry. With support from the Japanese government, chipmakers like TSMC, Samsung Electronics, and Intel Corp have committed to investing billions of dollars in Japan.
