The FY2024 supplementary budget proposal announced by the Japan government includes support on the scale of 1.5 trillion yen in the fields of next-generation semiconductors and AI, making a major step forward in strengthening the foundation of the digital industry.
🟦 Japan Government to provide 1.5 trillion yen in support for next-generation semiconductors and AI
The supplementary budget for FY2024 plans to provide support on the scale of 1.5 trillion yen for the development and demonstration of advanced semiconductors, quantum computing, and generative AI. Particular attention is paid to support for Rapidus, which is promoting the domestic production of next-generation semiconductors.
Lapidus Initiatives
- 2023: Construction of a plant in Chitose begins
- 2025: Prototype line to be commissioned
- 2027: Mass production of 2nm process rule products will begin
🟦 Why is this support important?
This budget proposal addresses Japan’s urgent issue of strengthening its digital industrial base. In the face of a global semiconductor shortage and geopolitical risks, it is important for Japan to establish its own technological base from the perspective of economic security. In addition, AI technology and quantum computing will be the cornerstone of the industry in the future, and upfront investment to secure leadership in these areas is essential
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🟦 Summary
This supplementary budget proposal is an important step for Japan to open up the future of the digital industry. Massive investments in the fields of next-generation semiconductors and AI aim to strengthen Japan’s technological capabilities and improve its international competitiveness.
Even after the change of prime minister, it seems that the Japan government continues to focus on subsidies in the semiconductor sector. We hope that this continuous support will contribute to the revival of domestic industries and the strengthening of international competitiveness.
