The government is ramping up its large-scale spending efforts to secure semiconductors, recognized as a crucial component across a range of industries.
In the fiscal 2023 supplementary budget, the government allocated approximately ¥1.8 trillion ($12 billion) for the construction and upgrading of production facilities, as well as the development of cutting-edge technologies. In addition, new tax incentives have been introduced for manufacturers.
The substantial investment underscores the escalating global competition for semiconductors, which have become increasingly vital for economic security. In a bid to rejuvenate its semiconductor industry, Japan has entered the fray with an unusually high level of financial support.