Japan Unveils Ambitious $65 Billion Chip Industry Boost

Japanese Prime Minister Shigeru Ishiba announced a $65 billion plan to enhance the country's chip and artificial intelligence sectors with incentives. This initiative aims to fortify chip supply chains, targeting ventures like Rapidus. The plan foresees significant economic impacts and avoids deficit-covering bonds for funding.

In a major economic announcement, Japanese Prime Minister Shigeru Ishiba has introduced a comprehensive plan worth $65 billion to revitalize the nation's chip and artificial intelligence industries. The initiative will involve substantial financial incentives aimed at bolstering the chip supply chain amid global trade tensions.

The Japanese government plans to table the proposal, which includes specific legislation to boost the production of next-generation semiconductor chips, in the coming parliamentary session. A focal part of this strategy is Rapidus, a chip foundry venture that seeks to mass-produce advanced chips with international partners such as IBM.

Addressing the media, Ishiba emphasized that the funding for this ambitious plan would not rely on deficit-covering bonds, though specifics on financial backing were not disclosed. The initiative is part of a broader economic package set to receive cabinet approval, detailing a 50 trillion yen investment in chips over the next decade.

(With inputs from agencies.)