In a strategic move to maintain Japan's competitiveness in the global technology landscape, Prime Minister Shigeru Ishiba unveiled a substantial financial commitment of over $65 billion in new funding.
This public investment, projected to surpass ¥10 trillion ($65 billion) by the fiscal year 2030, aims to bolster the nation's semiconductor and artificial intelligence industries. Prime Minister Ishiba expressed optimism that this investment will serve as a catalyst, attracting an additional ¥50 trillion in combined public and private investments over the next decade.
This new funding initiative, distinct from previously allocated resources of approximately ¥4 trillion, is anticipated to be included in an upcoming economic stimulus package designed to enhance Japan's position in the global semiconductor arena.
The United States and its allies are in a competitive race to maintain an edge over China in the realm of AI-driven semiconductor technology, which is increasingly recognized as vital for economic security.
President Joe Biden's 2022 Chips and Science Act includes provisions for $39 billion in grants for semiconductor manufacturers, along with loans and guarantees totaling an additional $75 billion, plus tax credits of up to 25%.
In contrast, China's financial commitment to the semiconductor sector is expected to significantly surpass that of the United States. China currently leads globally in the number of chip manufacturing facilities under construction and has been strengthening the Big Fund to manage state investments in key domestic companies, including Semiconductor Manufacturing International Corp. and Huawei Technologies Co.