The government will propose a $65 billion plan to boost its chip industry with subsidies and other financial assistance over a period of “multiple years,” a draft seen on Monday showed.
The plan, with financial support worth ¥10 trillion ($65.10 billion) or more, comes as countries look to strengthen their control over chip supply chains after global shocks including trade tensions between the United States and China.
Japan’s government intends to submit the plan, including bills to financially help mass production of next-generation chips, to the next parliament session, the draft shows.
It specifically targets chip foundry venture Rapidus and other suppliers of chips for artificial intelligence.
Rapidus is headed by industry veterans and is targeting mass production of cutting-edge chips on Hokkaido from 2027 in partnership with IBM and Belgium-based research organization Imec.
Last year, the Japanese government said it would allocate some ¥2 trillion to support its chip industry.
The latest plan is part of the government’s comprehensive economic package to be approved by the Cabinet on Nov. 22 and will also call for a total of ¥50 trillion in public and private sector investment in chips over the next 10 years.
The government expects the economic impact to total around ¥160 trillion, according to the draft.
