In order to cope with the increasingly fierce global technological competition, especially the competitive pressure from China, Prime Minister Shigeru Ishiba announced that he would invest more than 10 trillion yen (about 65 billion US dollars) to develop the semiconductor and artificial intelligence industries. The move aims to enhance Japan's competitiveness in the global technology sector and is expected to drive more than 50 trillion yen in public and private investment. This investment plan covers multiple aspects such as financial support, policy support and innovative financing models, and aims to enhance Japan's autonomy and competitiveness in key technology fields. This article will analyze in detail this major investment plan of the Japanese government and the strategic considerations behind it.
Japanese Prime Minister Shigeru Ishiba recently announced that the government will invest more than 10 trillion yen (about 65 billion US dollars) to support the country's semiconductor and artificial intelligence industries. This move aims to help Japan gain a foothold in the global technological competition, especially in its competition with China.
Image source notes: The image is generated by AI, and the image authorized service provider Midjourney
Ishiba said the new public funding will be in place by fiscal 2030 and is expected to be a catalyst for promoting public and private investment, which is expected to attract more than 50 trillion yen in investment over the next decade. According to the draft economic stimulus plan seen by the reporter, this funding framework will be separated from the previous funding of about 4 trillion yen, and it plans to have an economic impact of about 160 trillion yen for the Japanese economy.
Currently, global demand for semiconductors is expected to grow to 150 trillion yen in the next decade. Therefore, the new framework aims to provide greater certainty and support for private enterprises through various means such as outsourcing, financial support and legislative measures. . The Japanese government hopes to promote the country's overall economic growth through positive regional revitalization examples, such as the TSMC chip factory located in Kumamoto.
At the same time, China's investment in the semiconductor field should not be underestimated. According to data, China's number of semiconductor factories under construction is leading the world and is increasing its support for local chip manufacturers through national investment. In contrast, the Chip and Science Act launched by US President Biden in 2022 promises $39 billion in subsidies, plus $75 billion in loans and guarantees, as well as up to 25% Tax credits seek to remain competitive in this important area.
Shigeru Ishiba's government is also seeking new financing channels to provide funding to the semiconductor industry. According to a report by Nikkei on November 1, the government plans to issue bonds secured by holding assets (including NTT shares) to provide subsidies to semiconductor companies.
Under the new framework, Shigeru Ishiba emphasized that funds will not be raised through tax increases, and will also discuss the specific use of funds with various departments. This series of measures marks Japan's determination to increase investment in global semiconductor and artificial intelligence competition to ensure economic security.
Key points:
The Japanese government has pledged to invest $65 billion in support of the semiconductor and artificial intelligence industries over the next decade.
The new funding framework is designed to drive more than 50 trillion yen of public and private investment.
Ishiba government plans to provide financial support to the chip industry through innovative methods such as issuing guaranteed bonds.
In short, the Japanese government's huge investment plan reflects its determination to safeguard national economic security in the global technological competition. The effective use of this fund and the implementation of subsequent policies will directly affect Japan's future development in the fields of semiconductors and artificial intelligence, and deserve continuous attention.