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On Tue, 12 Nov, 12:03 AM UTC
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Japan unveils $65 billion plan to aid domestic chip industry
The plan, which will provide support worth 10 trillion yen ($65 billion) or more by fiscal 2030, comes as countries look to strengthen control over their chip supply chains after global shocks including trade tensions between the United States and China. TOKYO: Japanese Prime Minister Shigeru Ishiba on Monday unveiled a $65 billion plan to boost the country's chip and artificial intelligence industries via subsidies and other financial incentives. The plan, which will provide support worth 10 trillion yen ($65 billion) or more by fiscal 2030, comes as countries look to strengthen control over their chip supply chains after global shocks including trade tensions between the United States and China. Japan's government intends to submit the plan, including bills to support the mass production of next-generation chips, to the next parliament session, according to a draft of the plan seen by Reuters earlier on Monday. It specifically targets chip foundry venture Rapidus and other suppliers of chips for artificial intelligence, the draft showed. The government expects the economic impact to total around 160 trillion yen, according to the draft. Rapidus is headed by industry veterans and is targeting mass production of cutting-edge chips on the northern island of Hokkaido from 2027 in partnership with IBM and Belgium-based research organisation Imec. In Monday's news conference, Ishiba said the government would not issue deficit-covering bonds to fund the plan to support the chip industry. He did not reveal details on how it would be financed. A deficit-covering bond is a type of bond that is issued to make up for a state revenue shortfall. Last year, the Japanese government said it would allocate some 2 trillion yen to support its chip industry. The latest plan, part of the government's comprehensive economic package to be approved by cabinet on Nov. 22, will call for a total of 50 trillion yen public and private sectors investment in chips over the next 10 years. Ishiba said the government planned to meet with business and labour union representatives later this month to discuss next year's annual wage negotiations. Achieving sustained wage increases has been a priority for the government as rising living costs hit households, potentially weighing on consumption and the broader economy.
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Japan mulls USD65B in public support for AI, chips
TOKYO (XINHUA) - Japanese Prime Minister Shigeru Ishiba has unveiled a plan to introduce a new framework for providing over JPY10 trillion (USD65 billion) in public support over the coming years to bolster artificial intelligence (AI) and semiconductor industries through 2030, local media reported. The initiative seeks to stimulate private sector investment, aiming to spur over JPY50 trillion in public and private investment combined over the next decade, the public broadcaster NHK reported, citing Ishiba at a press conference. To support the initiative, the government was considering issuing bonds backed by shares in NTT and other government-owned assets. In recent years, Japan's semiconductor industry has received close to JPY4 trillion in government funding. However, further support has been deemed necessary, with companies like Rapidus, which focused on domestic production of advanced semiconductors, projected to need an additional JPY4 trillion. The new strategy highlighted the government's long-term commitment to strengthen AI and semiconductor sectors, but the substantial and sustained support for specific industries has raised questions about its viability and effectiveness.
[3]
Japan's Ishiba Pledges Over $65 Billion Aid for Chip, AI Sectors
Japanese Prime Minister Shigeru Ishiba pledged more that $65 billion of support for the nation's semiconductor and artificial intelligence sector over the next decade. Ishiba said he hoped aid of more than ¥10 trillion ($65.1 billion) for the sector by fiscal 2030 would serve as a catalyst to generate public and private investment of more than ¥50 trillion over the next 10 years.
[4]
Japan readies ambitious $65 billion plan to revive homegrown semiconductor manufacturing -- Expects economic return of over $1 trillion
Japanese Prime Minister Shigeru Ishiba has revealed a massive $65 billion plan to revitalize the chip industry in Japan, reports Reuters. The plan involves subsidies and other financial incentives for local chip production and is set to arrive by 2030. This is a part of Japan's longstanding efforts to rise among the ranks of the semiconductor world, hoping to revisit its glory days in the 1980s and 90s. Based on the draft, the grants are primarily for Rapidus and other AI chip manufacturers - whose names have not been mentioned. Rapidus was formed in 2022 owing to a landmark agreement between the Japanese government and eight multinational firms - all in an attempt to produce bleeding-edge chips in Japan. The foundry plans to mass-produce 2nm chips by 2027 which sets the bar pretty high. The Prime Minister reaffirmed that the grants would not be funded through deficit-covering bonds but did not clarify the exact details. In any case, the plan is expected to be approved by the cabinet on November 22. It targets investments worth $324 billion (50 trillion yen) through public and private firms in the semiconductor field over the next 10 years. The Japanese government expects an economic return of roughly $1 trillion (160 trillion yen) - yes we had to double-check that number. It doesn't take an expert to infer that Japan has high aspirations with such a sizeable budget but its viability can only be seen in the years to come. It took TSMC many years to strengthen its foothold in the industry; whose direct consequences are being faced by Intel and Samsung since chip makers are likely to prefer TSMC over the two. Likewise, we must question whether Japan has enough skilled engineers, or skilled enough engineers, given that it has been out of the top rank in semiconductors for many years. Case in point; China - with its "Big Fund Trilogy" or the neverending IP Theft accusations still hasn't been able to catch pace with the competition. While we won't see a chip designer like Nvidia choosing Rapidus in favor of TSMC anytime soon - it is still good to see more competition in the market as prices for cutting-edge nodes are slowly getting out of hand.
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Japanese Prime Minister Shigeru Ishiba announces a massive investment plan to revitalize the country's semiconductor and AI sectors, aiming to strengthen Japan's position in the global tech industry.
Japanese Prime Minister Shigeru Ishiba has unveiled a groundbreaking $65 billion (10 trillion yen) plan to revitalize Japan's semiconductor and artificial intelligence (AI) industries by 2030 12. This initiative aims to strengthen Japan's position in the global tech industry and secure its chip supply chain amidst growing international tensions.
The plan is part of a comprehensive economic package that seeks to stimulate both public and private sector investments. The government expects the total investment in the chip industry to reach 50 trillion yen ($324 billion) over the next decade 14. Remarkably, officials project an economic impact of around 160 trillion yen ($1 trillion), highlighting the plan's ambitious nature and potential significance for Japan's economy 14.
A significant portion of the funding is earmarked for Rapidus, a chip foundry venture targeting mass production of cutting-edge 2nm chips by 2027 14. The company, formed in 2022 through a collaboration between the Japanese government and eight multinational firms, aims to produce advanced semiconductors domestically 4. The plan also includes support for other AI chip manufacturers, although specific names have not been disclosed 4.
This massive investment comes as countries worldwide seek to strengthen control over their chip supply chains, particularly in light of trade tensions between the United States and China 1. Japan's move reflects a global trend of nations investing heavily in domestic semiconductor production to reduce reliance on foreign suppliers and enhance technological self-sufficiency.
Prime Minister Ishiba has stated that the government will not issue deficit-covering bonds to fund this initiative, although the exact financing details remain unclear 1. The plan, including bills to support mass production of next-generation chips, is expected to be submitted to the next parliamentary session 1. The cabinet is scheduled to approve the comprehensive economic package, which includes this chip and AI investment plan, on November 22 1.
While the plan demonstrates Japan's commitment to reviving its semiconductor industry, questions remain about its viability and effectiveness 2. Critics point out that Japan has been out of the top ranks in semiconductor manufacturing for years, potentially lacking the necessary skilled workforce 4. The success of this initiative will depend on Japan's ability to overcome these challenges and compete with established players like TSMC, Intel, and Samsung.
Beyond the chip and AI sectors, the Japanese government is also focusing on broader economic issues. Ishiba mentioned plans to meet with business and labor union representatives to discuss next year's annual wage negotiations, emphasizing the importance of sustained wage increases to support household consumption and the overall economy 1.
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Japan is set to approve a $65 billion investment package for microchips and artificial intelligence, aiming to regain its position as a global tech leader and address challenges posed by its aging population.
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Japan has earmarked an additional ¥1.5 trillion ($9.9 billion) in its extra budget to boost chip and AI development, including support for the Rapidus foundry project. This move aims to keep Japan competitive in the global race for advanced technology.
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Japan's state-backed chip venture Rapidus has started test production of next-generation 2-nanometer chips, marking a significant step in the country's ambitious plan to regain its position in the global semiconductor industry and produce advanced AI components.
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Japan has contracted Tenstorrent, a Silicon Valley AI chip startup, to train up to 200 Japanese chip designers over five years, aiming to reinvigorate its semiconductor industry and regain global market share.
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Nvidia CEO Jensen Huang meets with Japanese officials to discuss the country's potential in AI development and the need for increased energy infrastructure to support it.
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3 Sources
