Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Japan to invest $13 billion in semiconductor and AI technology

Published 11/10/2023, 09:01 AM
© Reuters.

In a strategic move to bolster its technological competitiveness, Japan has unveiled a plan to invest 2 trillion yen (approximately $13 billion) into the development of semiconductor production and generative AI technology. The announcement is part of a broader economic stimulus package aimed at enhancing Japan's position in the global tech landscape amid ongoing supply chain disruptions and geopolitical tensions.

The investment includes significant funding for semiconductor ventures, with Taiwan Semiconductor Manufacturing Company (TSMC) receiving 770 billion yen (around $4.6 billion) to establish its second chip fabrication plant in Kumamoto prefecture. This facility is expected to commence construction in April 2024 and begin producing 12nm chips by 2026. The first TSMC fab in the region, which comes with a price tag of US$8.6 billion, will receive a subsidy of US$3.5 billion from Japan's Ministry of Economy, Trade and Industry (METI) and is scheduled to start operations by December 2024.

Additionally, Japan's trade ministry official Motoki Kurita highlighted the allocation of 650 billion yen (USD 4.3 billion) to Rapidus for next-generation microchip development, as well as a proposed 460 billion yen for a new PSMC facility in Miyagi prefecture. The remaining funds from the investment are earmarked for supercomputer development.

This initiative represents a significant push by Japan to reassert itself in the critical field of semiconductor manufacturing—a sector that has seen supply chain vulnerabilities exposed during the pandemic and rising tensions with China. The investment also underscores the importance of generative AI technologies as a future cornerstone of industry and innovation.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The sweeping measures come as part of Japan's larger USD 100 billion stimulus package, which was approved by the cabinet and aims to revitalize an economy challenged by external pressures and internal needs for technological advancement. With these investments, Japan seeks not only to secure its own supply chains but also to contribute more substantially to the global semiconductor market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.