Japan to Subsidize Domestic Chipmaking Beyond the Cutting Edge

(Nikkei Asia) — Japan will shoulder a portion of capital investments related to a variety of semiconductors in exchange for 10 years of guaranteed production, expanding incentives for domestic chip manufacturing beyond cutting-edge products.

The country designated semiconductors as a product critical to daily lives and economic activities under an economic security law enacted in 2022. It will dedicate 368.6 billion yen ($2.8 billion) from a 1.3 trillion yen supplementary fiscal 2022 budget to fund the new subsidies designed by the Ministry of Economy, Trade and Industry.