Japan's $65 Billion Boost: Shaping the Future of Chip Industry

Japan plans to infuse $65 billion into its chip industry over multiple years, focusing on mass-producing next-gen chips. This move is part of a broader strategy to secure chip supply chains amid global trade tensions. The plan targets ventures like Rapidus, and anticipates $1 trillion in economic impact.

In a strategic move to fortify its position in the semiconductor sector, Japan's government is set to propose a $65 billion initiative aimed at bolstering its chip industry through subsidies and financial support. The initiative, as indicated by a draft seen by Reuters, outlines a multi-year financial plan.

This substantial investment is intended to reinforce supply chain control, a response to global challenges such as the trade tensions between the United States and China. The plan features support mechanisms for mass production of state-of-the-art chips and is expected to be introduced in the upcoming session of parliament.

With companies like Rapidus at the helm, Japan is focusing on mass production of cutting-edge chips by 2027, in collaboration with IBM and Imec. As part of a broader economic scheme, this initiative is projected to yield an economic benefit of around 160 trillion yen.

(With inputs from agencies.)