Japan unveiled an ambitious semiconductor strategy worth 10 trillion yen ($65.1 billion) through fiscal 2030, ramping up efforts to rebuild its once-dominant position in the global chip industry.
The plan, set for parliamentary review, aims to shore up domestic chip production and artificial intelligence capabilities as geopolitical tensions between the U.S. and China threaten supply chains. A significant portion of the funding will support Rapidus, a homegrown chip venture partnering with IBM Corp. and Belgium’s Imec for advanced semiconductor production in Hokkaido by 2027.
Prime Minister Shigeru Ishiba ruled out deficit-covering bonds to finance the initiative, though specific funding details remain unclear. The government projects the program will generate 160 trillion yen in economic impact.
The latest commitment dwarfs last year’s 2 trillion yen chip industry package and forms part of a broader economic blueprint awaiting Cabinet approval on November 22. The full strategy envisions 50 trillion yen in combined public and private investment over a decade.
Japan’s push mirrors similar moves by the U.S. and Europe to reduce reliance on Asian chip manufacturing amid growing concerns about supply chain vulnerabilities and technological sovereignty.
