Japan Invests for Semiconductor and AI Leadership: $65 Billion by 2030

• Strategic Investment Initiative: The Japanese government plans to allocate over ¥10 trillion ($65 billion) by fiscal 2030 to support the semiconductor and AI sectors. This initiative is part of a broader economic stimulus package designed to generate an estimated economic impact of approximately ¥160 trillion.
• Public-Private Investment Goal: The plan aims to attract more than ¥50 trillion in combined public and private investments over the next ten years, utilizing methods such as outsourcing, financial support, and legislative measures to enhance predictability for private enterprises.
• Global Competitive Context: This move positions Japan alongside other major economies investing heavily in semiconductor capabilities. For instance, the United States’ 2022 Chips and Science Act offers $39 billion in grants, additional loans and guarantees worth $75 billion, and tax credits up to 25% to support chipmakers. China is also significantly investing in its chip sector, with numerous plants under construction and substantial state investments through entities like the Big Fund.
• Regional Economic Revitalization: Prime Minister Ishiba emphasized the importance of regional development, citing the positive impact of TSMC’s chip plant in Kumamoto as a model for nationwide revitalization efforts.
• Previous Investments and Future Plans: Under former Prime Minister Fumio Kishida, Japan earmarked approximately ¥4 trillion to rejuvenate its chip industry, including ¥920 billion for Rapidus Corp. in Hokkaido. Rapidus aims to commence mass production of advanced logic chips by 2027. The new funding framework is separate from these previously allocated funds.

Why This Matters:

Japan Invests for Semiconductor and AI Leadership $65 Billion and this substantial investment underscores its commitment to reestablishing a leading position in the global semiconductor and AI industries. By fostering innovation and enhancing domestic production capabilities, Japan seeks to reduce reliance on foreign suppliers, strengthen economic security, and stimulate regional economic growth. This strategic initiative aligns with global trends, as major economies recognize the critical importance of semiconductor technology in driving future economic and technological advancements.