Japan renews cutting-edge chip plan, confirms sales goal of $108 bln

Published: Updated:
Read Mode
100% Font Size
3 min read

The Japanese government revamped its chip strategy with a goal of tripling sales of domestically produced semiconductors to more than 15 trillion yen ($108 billion) by 2030, as the nation centers chips at the heart of its economic security policy.

The revised strategy, released on Tuesday, aims to strengthen efforts to develop and produce cutting-edge semiconductors that are critical for economic security measures and advanced
technology like generative AI, according to the economy ministry.

For the latest headlines, follow our Google News channel online or via the app.

The sales target for firms that make chips in Japan will help se-cure a stable supply of semiconductors for the nation, according to the strategy. The target, which appeared in earlier drafts of the revised strategy, compares with sales of about 5 trillion yen in 2020.

“Various investments are being made by Japanese chip-related companies including smaller ones, and we’d like to back up these investments,” economy minister Yasutoshi Nishimura told report-ers prior to the release of the strategy. “We want to secure the necessary budget to support these efforts.”

The 274-page strategy didn’t say how much the government plans to dole out over the coming years in addition to the billions of dollars already in place to encourage Taiwan Semiconductor Manufacturing Co. to add production capacity and to fund Japan’s own chip venture Rapidus Corp.

Last month, Prime Minister Fumio Kishida met with the heads of the world’s largest chipmakers as part of efforts to bring semiconductor production and investment to Japan. The chip-makers said they would consider more investment in Japan de-pending on financial incentives and demand.

The government has pledged financial support worth 330 billion yen for Rapidus and up to 476 billion yen for TSMC’s new factory in Kumamoto in southern Japan. The government is also provid-ing up to 92.9 billion yen in subsidies to Kioxia Holdings Corp.’s plant in Mie in central Japan.

The government expects the TSMC and Kioxia projects alone to boost Japan’s gross domestic product by 4.2 trillion yen, create about 463,000 jobs and generate roughly 760 billion yen in tax
revenue, the revised strategy showed.

Read more:

Japanese trade minister Nishimura to visit US, discuss chips: Report

Intel reveals research to speed up computing power into chips beyond 2025

US President Biden signs order on $52 bln chips law implementation

Top Content Trending