Japan's $65 Billion Plan to Boost Chip Industry
The Japanese government is proposing a $65 billion plan to bolster its chip industry through subsidies and other financial assistance over several years. This move comes amidst global efforts to strengthen control over chip supply chains, particularly in light of recent trade tensions between the United States and China.
The plan, with financial support worth 10 trillion yen ($65.10 billion), will be submitted to the next parliament session and includes bills to financially support the mass production of next-generation chips. The initiative specifically targets chip foundry venture Rapidus and other suppliers of chips for artificial intelligence.
Rapidus, led by industry veterans, aims to mass-produce cutting-edge chips on the northern island of Hokkaido from 2027 in partnership with IBM and Imec, a research organization based in Belgium.
This latest plan builds upon the government's previous commitment of 2 trillion yen ($13 billion) to support the chip industry last year. It is part of a comprehensive economic package to be approved by the cabinet on November 22nd, which also calls for a total of 50 trillion yen in public and private sector investment in chips over the next decade.
The government anticipates the economic impact of this plan to reach around 160 trillion yen. This ambitious initiative underscores Japan's commitment to becoming a major player in the global chip industry and securing its position in the rapidly evolving technological landscape.