Japan Launches $65 Billion Initiative to Revitalize Semiconductor Industry

The ambitious plan aims to boost domestic chip production and attract significant public and private investment by 2030.

Prime Minister Shigeru Ishiba announced the initiative, which includes subsidies and financial incentives to strengthen Japan's semiconductor and AI sectors.
The plan targets a total investment of 50 trillion yen from public and private sectors over the next decade, with an expected economic impact of 160 trillion yen.
Rapidus, a state-backed chip venture, is a key beneficiary, aiming to mass-produce 2-nanometer chips by 2027 in partnership with IBM.
Japan's strategy includes attracting global chip leaders like TSMC and Samsung to invest in the country, enhancing its semiconductor ecosystem.
The initiative will not rely on deficit-covering bonds or tax hikes for funding, as confirmed by industry minister Yoji Muto.