Japan unveils $65b plan to boost chip industry

The Japanese government will introduce a $65 billion plan aimed at bolstering its domestic chip industry, a draft seen on Monday showed.

The initiative, which will involve subsidies and other financial incentives over a period of “multiple years”, is designed to strengthen Japan’s position in the global semiconductor supply chain.

The government intends to present the plan, including legislation for financial support for next-generation chip mass production, to the upcoming parliamentary session.

The focus will be on supporting companies like Rapidus, a chip foundry venture led by industry veterans, and other suppliers of AI chips.

Rapidus, in partnership with IBM and Imec, aims to commence mass production of cutting-edge chips in Hokkaido by 2027. This latest plan builds upon the government’s previous commitment of $13 billion to support the chip industry.

The broader economic package, to be approved on November 22, envisions a total investment of 50 trillion yen from both public and private sectors over the next decade.

The government estimates that this initiative could generate an economic impact of around 160 trillion yen.

Attribution: Reuters

Subediting: Y.Yasser