Japan's Bold $65 Billion Bet on Semiconductors and AI Spurs Massive Investment Wave
1min read Japan's Prime Minister Shigeru Ishiba has committed to injecting over $65 billion into the nation's semiconductor and artificial intelligence sectors over the next decade. Ishiba has announced plans to allocate more than 10 trillion yen (approximately $651 billion) in subsidies to these industries by fiscal year 2030. This initiative aims to serve as a catalyst, potentially generating over 50 trillion yen in both public and private investment over the next ten years. He intends to replicate successful regional development models, like the TSMC Kumamoto chip factory, nationwide.
The Prime Minister emphasized that discussions are underway with various departments regarding the financing of this plan. However, he ruled out relying on deficit-financing bonds for funding these measures. Recent reports indicate that the Japanese government is exploring new avenues to fund the nation's semiconductor sector. Ishiba's administration plans to issue bonds backed by government-held assets, including NTT stock, to provide subsidies to semiconductor companies.
Previously, Japan had earmarked approximately 4 trillion yen in supplementary budgets to invigorate its semiconductor industry. This includes 920 billion yen designated for Rapidus, a company aiming to commence mass production of advanced logic chips by 2027. The heightened investment underscores Japan's commitment to securing its position in the competitive global semiconductor market and fostering advancements in AI technology.