Japan on Wednesday drafted a new economic growth strategy with a strong focus on enhancing domestic development and production of cutting-edge semiconductors, one of the country's vulnerable sectors uncovered during the coronavirus pandemic.
Under the annual growth plan covering a range of areas including vaccine strategy and information security, the government aims to "build a system which ensures a steady semiconductor supply" and reduce the country's dependence on foreign manufacturers by offering research funding and encouraging chipmakers to build factories in Japan.
The government will also provide incentives and financial support for domestic development and production of COVID-19 vaccines, after it has come under fire for slow rollouts of vaccines purchased from foreign drugmakers.
As for its already set carbon neutrality target in 2050, the government hopes to make progress in greenhouse gas emission cuts by promoting corporate efforts through a ¥2 trillion ($18 billion) fund and introducing carbon pricing.
The Cabinet of Prime Minister Yoshihide Suga is expected to endorse the growth strategy in mid-June.