The government will provide 100 billion yen in support for 8 items including semiconductors and advanced electronic components such as SiC power semiconductors.
November 29, 2024 11:11 AM GMT+9
Minister of Economy, Trade and Industry Muto revealed on the 29th that based on the Economic Security Enhancement Act, a plan to certify 8 companies for ensuring stable supply of semiconductors and advanced electronic components and provide up to 100 billion yen in support. This was announced in a press conference after the Cabinet meeting.
The certified project includes investments in SiC power semiconductors by Fuji Electric (6504.T) and Denso (6902.T). The total business amount is 211.6 billion yen with a maximum subsidy of 70.5 billion yen.
Minister of Economy, Trade and Industry Muto stated: "The plan for SiC power semiconductors, expected to expand the market with the spread of electric vehicles, is included. By consolidating production bases, we aim to secure supply capacity equivalent to top European and American companies and reduce total investment costs and effectively utilize personnel at Fuji Electric's Matsumoto factory.
In addition, there are allocations from last year's supplementary budget, such as 7 billion yen for Tokyo Ohka Kogyo (4970.T)'s photosensitive materials and polymers, and 5.4 billion yen for Murata Manufacturing (6981.T)'s BAW filters in electronic components.
The certified project includes investments in SiC power semiconductors by Fuji Electric (6504.T) and Denso (6902.T). The total business amount is 211.6 billion yen with a maximum subsidy of 70.5 billion yen.
Minister of Economy, Trade and Industry Muto stated: "The plan for SiC power semiconductors, expected to expand the market with the spread of electric vehicles, is included. By consolidating production bases, we aim to secure supply capacity equivalent to top European and American companies and reduce total investment costs and effectively utilize personnel at Fuji Electric's Matsumoto factory.
In addition, there are allocations from last year's supplementary budget, such as 7 billion yen for Tokyo Ohka Kogyo (4970.T)'s photosensitive materials and polymers, and 5.4 billion yen for Murata Manufacturing (6981.T)'s BAW filters in electronic components.
<Keeping an Eye on the Effects of the Trump Administration's Tariffs>
Regarding President-elect Trump's plan to impose additional tariffs of 10% on almost all imports from China, and 25% on imports from Canada and Mexico, Japan's approach is to "refrain from making premature comments at this stage" and to "watch the effects on Japanese companies from the movements in the USA and other countries."
Furthermore, he stated, "It is important to deepen and develop economic relations between Japan and the USA in a way that contributes to Japan's national interests. Even with the incoming administration, there will be no change in the commitment to closely communicate."
Regarding President-elect Trump's plan to impose additional tariffs of 10% on almost all imports from China, and 25% on imports from Canada and Mexico, Japan's approach is to "refrain from making premature comments at this stage" and to "watch the effects on Japanese companies from the movements in the USA and other countries."
Furthermore, he stated, "It is important to deepen and develop economic relations between Japan and the USA in a way that contributes to Japan's national interests. Even with the incoming administration, there will be no change in the commitment to closely communicate."
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