① Japan's new Prime Minister, Ishiwari Shigeru, promised to provide more than 10 trillion yen (about 65 billion US dollars) of support to the semiconductor and artificial intelligence industry; ② Ishiwari Shigeru hopes this funding framework will generate more than 50 trillion yen in public and private investment over the next ten years; ③ Minister of Economy, Trade and Industry Yoji Muto said that the government will not raise taxes to fund the new framework.
AFP, November 12 (Editor Zhou Ziyi) Japan's new prime minister, Shigeru Ishiwari, has promised to provide more than $65 billion in new support to the country's semiconductor and artificial intelligence industry to keep up with the global investment boom in cutting-edge technology.
In his latest speech, Shigeru Ishiwari mentioned that he hopes that government aid to the industry will exceed 10 trillion yen (about 65 billion US dollars) by fiscal year 2030, which will generate more than 50 trillion yen in public and private investment over the next 10 years.
Close the gap
According to a draft package obtained by the media, this support plan of up to 10 trillion yen has become more clear.
According to this draft, the new funding framework will be separated from the previous special fund of about 4 trillion yen and will be outlined in the upcoming economic stimulus plan. The goal is to have an economic impact of about 160 trillion yen.
The special funding of 4 trillion yen was proposed by the cabinet under the leadership of former Japanese Prime Minister Fumio Kishida. The budget aims to revitalize the chip industry, including allocating 920 billion yen to the local chip company Rapidus. Rapidus' goal is to mass-produce advanced logic chips by 2027.
However, the newly announced 10 trillion yen of additional funds will be used for a wider range of purposes, with the aim of helping Japan close the gap with the world's major chip-supporting countries.
Japan's Minister of Economy, Trade and Industry Yoji Muto (Yoji Muto) said on Tuesday that the new framework will be separated from the 4 trillion yen plan. “Chips are not limited to Rapidus; from now on, we will consider how to enter the next-generation semiconductor market.”
Currently, countries are racing to invest more in AI-driven semiconductor capabilities, and policymakers now consider this area critical to economic security.
For example, US President Joe Biden's 2022 Chip and Science Act promises to provide chipmakers with a total of $39 billion in grants, as well as loans and guarantees worth $75 billion, plus up to 25% in tax credits.
The Japanese government is also increasing its support for this industry, based on the need to promote national and regional economic growth. Shigeru Ishiwari won a re-election vote in the Diet on Monday (November 11). At a press conference held later, he said that TSMC's Kumamoto chip factory was a positive example, and he hoped the move would be promoted throughout Japan.
As for financing, the draft mentions that the framework aims to provide more than 10 trillion yen of public aid through financial support and legislative measures, and predicts that global chip demand is expected to triple to reach 150 trillion yen over the next 10 years.
Yoji Mutou said the government will not raise taxes to fund the new framework, adding that details are still being finalized. Shigeru Ishiwari pointed out that he will discuss the financing of the plan with various departments, but he will not pay for these measures through deficit financing bonds.
