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Japan commits $65 billion to domestic semiconductor industry revival

Japan unveils $65 billion semiconductor investment plan (Image source: Renesas)
Japan unveils $65 billion semiconductor investment plan (Image source: Renesas)
Japan unveils an ambitious 10 trillion yen ($65 billion) semiconductor and AI investment plan, with hopes of generating nearly $1 trillion in economic returns by 2030. The initiative centers on Rapidus, aiming to produce 2nm chips by 2027, as Japan seeks to reclaim its former position as a global semiconductor powerhouse.

Japanese Prime Minister Shigeru Ishiba just rolled out a hefty 10 trillion yen (around $65 billion) plan to revitalize Japan's semiconductor and AI industries. This massive investment plan, set to be presented to parliament, aims to ramp up local chip production by 2030.

A big focus of the plan is on Rapidus, Japan's up-and-coming chip manufacturing project, along with other companies making AI semiconductors. Rapidus started in 2022 with backing from the government and eight major corporations, and it aims to begin mass-producing 2-nanometer chips by 2027 in Hokkaido. They've partnered with IBM and the Belgian research group Imec to make this happen.

The government projects a significant economic impact, hoping to bring about 160 trillion yen (about $1 trillion) in financial gains. They aim to see about 50 trillion yen ($322 million) in combined public and private investment into semiconductor development over the next 10 years.

Interestingly, Ishiba pointed out that they’re steering clear of deficit-covering bonds to fund this. Although he didn't get into specifics about where the money’s coming from, it’s clear they’re stepping up from Japan's earlier 2 trillion yen ($12.9 billion) investment into its semiconductor industry, signaling a big jump in the country’s drive to snag a top spot in the global chip industry.

This move comes as countries around the world hustle to build stronger supply chains after recent market disruptions and ongoing U.S.-China trade tensions. The whole economic package, with these semiconductor measures included, is set to go before the cabinet for approval on November 22. It’s Japan’s boldest move in decades to try and reclaim its place as a leader in advanced chip-making, harking back to its dominance in the field during the 1980s and 1990s.

Source(s)

Reuters (in English)

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2024 11 > Japan commits $65 billion to domestic semiconductor industry revival
Nathan Ali, 2024-11-13 (Update: 2024-11-14)