Japanese authorities have decided to invest $65 billion in the national semiconductor industry by 2030

The Japanese government has long talked about the need to expand subsidies for the national semiconductor industry and was preparing a legislative framework for this. The plan announced yesterday provides for the allocation of at least $65 billion until fiscal year 2030 to support this sector of the Japanese economy.

Image source: Tokyo Electron

In addition to the semiconductor industry, the corresponding funds will be allocated to the development of artificial intelligence technologies, and in fact the matter may not be limited to the indicated amount of $65 billion. A bill describing the mechanism for subsidizing these sectors of the Japanese economy should be submitted for discussion by legislators during the next parliamentary session. When distributing funds, special attention will be paid to supporting the young and ambitious company Rapidus, which expects to launch production of 2nm chips in the country by 2027. Other suppliers of chips for artificial intelligence systems can also count on preferences.

The authors of the bill expect that the economic effect from the implementation of this program will reach $1 trillion. The Japanese authorities have not yet said from what sources the program will be financed, but they emphasize that government bonds will not be used for this. The plan will be submitted to the Japanese government on November 22; in total, it provides for raising $325 billion of private and public funds for the development of the high-tech industry until 2030 inclusive.