27 Nov 2023 -
 General

Japan invests $13 billion to revitalise its chip industry

Tokyo Japan Electronics

In a strategic move to revive its position in the global semiconductor market, the Japanese government has announced a substantial investment of approximately 2 trillion yen ($13 billion). This funding, aimed at rejuvenating Japan’s chip industry, forms part of a wider strategy to restore the nation’s former prominence in this critical sector, according to Bloomberg.

Once a leading provider in the realm of chipmaking tools and materials, Japan has seen its manufacturing edge diminish over recent decades. In response, the government’s latest financial commitment seeks to bolster the sector, including offering subsidies to chipmakers for expanding their capacity.

A significant portion of this investment will be channeled into supporting major players in the chip industry. Notably, the Taiwanese chipmaker TSMC and the chip foundry venture Rapidus are expected to benefit from this funding. Rapidus, in particular, has ambitious plans to manufacture cutting-edge chips in Hokkaido, Japan.

This financial support for the chip industry is a key element of Prime Minister Fumio Kishida’s larger spending plan. The total expenditure, amounting to 13.1 trillion yen, was approved as part of the 2023/24 extra budget. To facilitate this level of spending, Japan is preparing to issue nearly 9 trillion yen ($59.8 billion) in bonds. However, this move has raised concerns about the potential impact on the nation’s already significant debt.

For the global electronics industry, Japan’s renewed focus and investment in its semiconductor sector signal a pivotal effort to regain a competitive edge. This development not only represents Japan’s commitment to technological advancement but also highlights the ongoing global competition and strategic importance of the semiconductor industry.

Thousands of senior engineers and procurement professionals subscribe to our LinkedIn Market Intel newsletter – get yours here

For more help with looking at supply chain options, contact Astute Electronics

Related News

29 Feb 2024 - General

Electronics industry optimistic: bright start to 2024

Read more

26 Feb 2024 - General

India’s WTO stance raises concerns for chip industry growth

Read more

22 Feb 2024 - General

Electronics manufacturers cautious but optimistic despite recession fears

Read more

21 Feb 2024 - General

Hidden threat: counterfeit hardware infiltrates 80% of computers

Read more

15 Feb 2024 - General

Chip rush: Global scramble for semiconductor supremacy

Read more

13 Feb 2024 - General

Foxconn faces semiconductor shortage amid ‘AI chip race’

Read more