Japanese Prime Minister Shigeru Ishiba pledged more than US$64.9 billion of fresh support for the nation’s semiconductor and artificial intelligence (AI) sector as Tokyo seeks to keep up with a global spending spree on cutting-edge technology.
Ishiba said he hoped public aid of more than ￥10 trillion (US$64.91 billion) for the sector by fiscal 2030 would serve as a catalyst to generate public and private investment of more than ￥50 trillion over the next 10 years.
The new funding framework, separate from previously earmarked funds of about ￥4 trillion, would be sketched out in an upcoming economic stimulus package with an aim to generate an economic impact of about ￥160 trillion, a draft of the package seen by Bloomberg showed.
Photo: Bloomberg
The additional funding would help Tokyo narrow the gap with global powers on chip support. The US and its allies are racing to keep ahead of China in AI-powering semiconductor capabilities, a domain that policymakers view as essential for economic security.
Tokyo’s ramping up of support for the sector is also based on the need to fuel economic growth at the national and regional levels.
Speaking at a news briefing on Monday after winning a vote in parliament to remain prime minister, Ishiba said he wanted to spread positive examples of regional revitalization such as Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) chip plant in Kumamoto Prefecture across the nation.
Global chip demand is expected to triple to ￥150 trillion over the next 10 years, and the framework aims to provide public aid of more than ￥10 trillion through methods including outsourcing, financial support and legislative measures to boost predictability for private companies, according to the draft.
A previous goal of reaching ￥10 trillion in chip-sector investment set by former Japanese prime minister Fumio Kishida relied on private sector support in addition to public money.
Under Kishida, Japan already earmarked about ￥4 trillion in extra budgets to revive its chip sector, including ￥920 billion for Rapidus Corp in Hokkaido. Rapidus aims to mass produce advanced logic chips by 2027.
The new framework would be separate from the ￥4 trillion, Japanese Minister of Economy, Trade and Industry Yoji Muto said yesterday.
“Chips are not limited to Rapidus,” Muto said. “The process will be about considering how we will approach the next-generation semiconductor market from now on.”
The government would not raise taxes to fund the new framework, Muto said, adding that details are still being hammered out.
Ishiba said he would discuss the funding of the plans with ministries, but he would not pay for the measures through deficit-financing bonds.
Earlier local media reports suggested the government was looking for a new way of providing funding for Japan’s semiconductor sector. Ishiba’s government is planning to issue bonds backed by assets it holds, including NTT Corp shares, to provide subsidies to semiconductor companies, the Nikkei reported on Nov. 1.
STRONG INTEREST: Analysts have pointed to optimism in TSMC’s growth prospects in the artificial intelligence era as the cause of the rising number of shareholders The number of people holding shares of chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) hit a new high last week despite a decline in its stock price, the Taiwan Depository and Clearing Corp (TDCC, 台灣集保) said. The number of TSMC shareholders rose to 2.46 million as of Friday, up 75,536 from a week earlier, TDCC data showed. The stock price fell 1.34 percent during the same week to close at NT$1,840 (US$57.55). The decline in TSMC’s share price resulted from volatility in global tech stocks, driven by rising international crude oil prices as the war against Iran continues. Dealers said
PRICE HIKES: The war in the Middle East would not significantly disrupt supply in the short term, but semiconductor companies are facing price surges for materials Taiwan’s semiconductor companies are not facing imminent supply disruptions of essential chemicals or raw materials due to the war in the Middle East, but surges in material costs loom large, industry association SEMI Taiwan said yesterday. The association’s comments came amid growing concerns that supplies of helium and other key raw materials used in semiconductor production could become a choke point after Qatar shut down its liquefied natural gas (LNG) production and helium output earlier this month due to the conflict. Qatar is the second-largest LNG supplier in the world and accounts for about 33 percent of global helium output. Helium is
Taiwan’s natural gas supply remains stable through the end of May, despite rising concerns about potential disruptions to Qatari liquefied natural gas (LNG) supplies due to escalating conflicts in the Middle East, the Ministry of Economic Affairs said yesterday. The ministry in a statement said that Taiwan has completed preparations for natural gas supply and shipping schedules through the end of May. It has also made plans to increase natural gas imports from regions outside the Middle East in June to ensure a stable supply, it added. Taiwan sources natural gas from 14 countries and is not solely dependent on the Middle East,
China is clamping down on fertilizer exports to protect its domestic market, industry sources said, putting an additional strain on global markets that were already grappling with shortages caused by the US-Israeli war on Iran. China is among the largest fertilizer exporters — shipping more than US$13 billion of it last year — and it has a history of controlling exports to keep prices low for farmers. Shipments through the war-blocked Strait of Hormuz account for about one-third of the sea-borne supply. This month, Beijing banned exports of nitrogen-potassium fertilizer blends and certain phosphate varieties, sources said. The ban, which has not
RSS