Japan unveils $65 billion plan to boost chip and AI industries
TOKYO – Japanese Prime Minister Shigeru Ishiba unveiled on Monday a $65 billion plan to boost the country’s chip and artificial intelligence industries via subsidies and other financial incentives.
Japan’s government is preparing a plan to invest 10 trillion yen ($65 billion) or more by fiscal 2030 to strengthen its chip supply chains, amid global disruptions such as trade tensions between the U.S. and China.
The plan, which includes bills to support the mass production of next-generation chips, will be submitted to parliament in the upcoming session, according to a draft seen by Reuters on Monday.
The initiative specifically targets chip foundry venture Rapidus and other suppliers of chips for artificial intelligence.
Accordingly, the government expects the economic impact of the plan to reach approximately 160 trillion yen, the draft shows.
Rapidus is headed by industry veterans and is targeting mass production of cutting-edge chips on the northern island of Hokkaido from 2027 in partnership with IBM and Belgium-based research organisation Imec.
In a news conference on Monday, Ishiba stated that the Japanese government would not issue deficit-covering bonds to fund its chip industry support plan, though he did not provide details on how it would be financed.
Last year, the government allocated 2 trillion yen for the chip sector. The new plan, part of a broader economic package to be approved on November 22, aims for a total of 50 trillion yen in public and private investment in chips over the next 10 years.
