Japan Investing in Revitalization
Japan government is injecting a substantial 2 trillion yen, equivalent to $13 billion, into rejuvenating its chip industry. This move aims to regain Japan’s former dominance in this crucial sector after experiencing a decline in manufacturing prowess. To counter this, the government is offering incentives to chipmakers to boost their production capabilities.
The allocated funds, intended for inclusion in a supplementary budget for the ongoing fiscal year, will support key players like TSMC (2330.TW), a Taiwanese chipmaker, and Rapidus, a chip foundry venture focused on producing cutting-edge chips in Hokkaido.
Part of Prime Minister Fumio Kishida’s larger 13.1 trillion yen spending plan outlined in the 2023/24 extra budget, this investment in the chip industry signifies a significant governmental commitment.
However, concerns persist over Japan’s financial strategy. The country plans to issue nearly 9 trillion yen, roughly $59.8 billion, in bonds, raising worries about escalating debt levels.
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