On November 11, 2024, Japanese Prime Minister Shigeru Ishiba unveiled a substantial $65 billion initiative aimed at enhancing the country’s semiconductor and artificial intelligence sectors. This plan, which will provide over 10 trillion yen in subsidies and financial incentives by the fiscal year 2030, comes as nations seek to strengthen control over their chip supply chains following global disruptions, including U.S.-China trade tensions.
The Japanese government is set to introduce the plan, which includes legislation to support the mass production of next-generation chips, during the upcoming parliamentary session. The anticipated economic impact of this initiative is projected to reach approximately 160 trillion yen.
One of the key players in this initiative, Rapidus, led by industry veterans, aims to commence mass production of advanced chips in Hokkaido by 2027 in collaboration with IBM and the Belgian research organization Imec.
During the press conference, Ishiba affirmed that the government would not issue deficit-covering bonds to finance the chip industry support plan, although specifics on alternative funding methods were not disclosed. Last year, the government allocated 2 trillion yen to bolster the semiconductor sector.
The current plan is part of a broader economic package expected to receive cabinet approval on November 22, which will require a total investment of 50 trillion yen from both public and private sectors in the semiconductor industry over the next decade.