November 12, 2024 – The Japanese government is set to unveil a massive 10 trillion yen initiative to bolster its chip industry over a span of “several years” through subsidies and other financial aid, according to a draft seen by Reuters.
This ambitious plan, which offers financial support of 10 trillion yen or more, is expected to be submitted during the next parliamentary session. It includes legislation aimed at providing fiscal assistance for the large-scale production of next-generation chips.
The scheme specifically targets chip foundry Rapidus and other suppliers of artificial intelligence chips. Led by industry veterans, Rapidus has plans to mass-produce cutting-edge chips in northern Hokkaido from 2027, in collaboration with IBM and Belgian research institute Imec.
Last year, the Japanese government allocated approximately 2 trillion yen to support its chip sector.
The latest plan is part of a comprehensive economic package that is slated for approval by the cabinet on November 22. It calls for a total investment of 50 trillion yen in the chip sector from both public and private sectors over the next decade. According to the draft, the Japanese government anticipates the economic impact of the plan to total approximately 160 trillion yen.
