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.
ENERGY ISSUES: The TSIA urged the government to increase natural gas and helium reserves to reduce the impact of the Middle East war on semiconductor supply stability Chip testing and packaging service provider ASE Technology Holding Co (日月光投控) yesterday said it planned to invest more than NT$100 billion (US$3.15 billion) in building a new advanced chip testing facility in Kaohsiung to keep up with customer demand driven by the artificial intelligence (AI) boom. That would be included in the company’s capital expenditure budget next year, ASE said. There is also room to raise this year’s capital spending budget from a record-high US$7 billion estimated three months ago, it added. ASE would have six factories under construction this year, another record-breaking number, ASE chief operating officer Tien Wu
The EU and US are nearing an agreement to coordinate on producing and securing critical minerals, part of a push to break reliance on Chinese supplies. The potential deal would create incentives, such as minimum prices, that could advantage non-Chinese suppliers, according to a draft of an “action plan” seen by Bloomberg. The EU and US would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China. The two sides are additionally seeking other “like-minded partners” to join a multicountry accord to help create these new critical mineral supply chains, which feed into
For weeks now, the global tech industry has been waiting for a major artificial intelligence (AI) launch from DeepSeek (深度求索), seen as a benchmark for China’s progress in the fast-moving field. More than a year has passed since the start-up put Chinese AI on the map in early last year with a low-cost chatbot that performed at a similar level to US rivals. However, despite reports and rumors about its imminent release, DeepSeek’s next-generation “V4” model is nowhere in sight. Speculation is also swirling over the geopolitical implications of which computer chips were chosen to train and power the new
Intel Corp is joining Elon Musk’s long-shot effort to develop semiconductors for Tesla Inc, Space Exploration Technologies Corp and xAI, marking a surprising twist in the chipmaker’s comeback bid. Intel would help the Terafab project “refactor” the technology in a chip factory, the company said on Tuesday in a post on X, Musk’s social media platform. That is a stage in the development process that typically helps make chips more powerful or reliable. The chipmaker’s shares jumped 4.2 percent to US$52.91 in New York trading on Tuesday. The Terafab project is a grand plan by Musk to eventually manufacture his own chips for
RSS