Shigeru Ishiba, Japan’s Prime Minister, has unveiled a significant initiative to bolster the nation’s semiconductor and artificial intelligence sectors, with a proposal to commit over 10 trillion yen ($65 billion) by the end of fiscal 2030.
This investment is part of an extensive economic package that is expected to be finalized this November, with the financing coming from different sources, including government subsidies, institutional investments, and debt guarantees.
Aiming to recapture its earlier global supremacy in chip production, the Japanese government plans to triple the sales figures of domestically produced semiconductor to exceed 15 trillion yen within this decade.
Japan’s dominance in the global semiconductor market has been dwindling since the 1980s due to the rise of prominent players like Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung.
The robust financial support marks a wider movement to diversify and strengthen Japan’s semiconductor supply chain. The plan looks to attract more than 50 trillion yen in combined public and private investments within the next 10 years and is set to be part of Japan’s overarching efforts for economic revitalization.
