The Japanese government has revamped its chip strategy with a goal of tripling sales of domestically produced semiconductors to more than ￥15 trillion (US$107.7 billion) by 2030, as the nation centers chips at the heart of its economic security policy.
The revised strategy, released yesterday, aims to bolster efforts to develop and produce cutting-edge semiconductors that are critical for economic security measures and advanced technology such as generative AI, the Japanese Ministry of Economy, Trade and Industry said.
The sales target for firms that make chips in Japan would help secure a stable supply of semiconductors for the nation, the strategy says.
The target, which appeared in earlier drafts of the revised strategy, compares with sales of about ￥5 trillion in 2020.
“Various investments are being made by Japanese chip-related companies, including smaller ones, and we’d like to back up these investments,” Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura told reporters prior to the release of the strategy. “We want to secure the necessary budget to support these efforts.”
The 274-page strategy did not say how much the government plans to dole out over the coming years in addition to the billions of dollars already in place to encourage Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to add production capacity and to fund Japan’s own chip venture, Rapidus Corp.
Last month, Japanese Prime Minister Fumio Kishida met with the heads of the world’s largest chipmakers as part of efforts to bring semiconductor production and investment to Japan.
The chipmakers said they would consider more investment in Japan depending on financial incentives and demand.
The government has pledged financial support worth ￥330 billion for Rapidus and up to ￥476 billion for TSMC’s new factory in Kumamoto in southern Japan. The government is also providing up to ￥92.9 billion in subsidies to Kioxia Holdings Corp’s plant in Mie in central Japan.
The government expects the TSMC and Kioxia projects alone to boost Japan’s GDP by ￥4.2 trillion, create about 463,000 jobs and generate about ￥760 billion in tax revenue, the revised strategy shows.
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