Japan's government is gearing up to present a substantial financial plan amounting to 10 trillion yen or around $65.10 billion to revitalize its chip industry. This move is in response to the ongoing global shifts and trade tensions between major economies like the United States and China that have highlighted the critical importance of securing chip supply chains.
The proposed plan focuses on providing financial assistance to chip foundry venture Rapidus and other companies involved in the chip production landscape, particularly in the realm of artificial intelligence. Rapidus, led by experienced industry professionals, is set to venture into mass-producing cutting-edge chips in collaboration with IBM and Imec on the northern island of Hokkaido starting from 2027. Last year, the Japanese government had already earmarked approximately 2 trillion yen or $13 billion to support its chip sector, indicating a sustained commitment to boosting the industry's capabilities and competitiveness.