With the aim of strengthening the competitiveness of the semiconductor industry, JEITA announces a new strategic proposal for the government — As international competition intensifies, a fundamental review of tax incentives and human resource development is essential for Japan’s recovery.
https://semicon.jeita.or.jp/news/docs/20250514_JEITA-JSIA_teigensyo.pdf
🟦 Launching “Semiconductor Strategy 2.0” – JEITA Recommends Fundamental Review of Tax System, Human Resources, and Industrial Structure
The Semiconductor Subcommittee of the Japan Electronics and Information Technology Industries Association (JEITA) has issued a proposal to the Ministry of Economy, Trade and Industry (METI) that Japan’s semiconductor strategy should be restructured from multiple perspectives, including taxation, human resources, funding, and infrastructure.
The state-led “Semiconductor and Digital Industry Strategy” that began in 2021 has achieved certain results, including the opening of TSMC’s Kumamoto factory and the establishment of Rapidus. However, it was pointed out that the lack of support for the memory and analog fields and the narrowness of the scope of tax incentives are issues, and that it is time to evolve into “Strategy 2.0.”
🟦 International comparison of tax incentives and investment in future technologies are key
The background to the proposal is the difference in international tax systems and changes in the industrial structure.
For example, the CHIPS Act in the United States and the K-Chips Act in South Korea accelerate the attraction of companies and technology investment through large-scale tax deductions and subsidies, and the difference with Japan is clear. Japan’s “Domestic Production Promotion Tax System for Strategic Sectors,” which began in fiscal 2024, also covers semiconductors, but some sectors, such as the memory field, are not covered, and companies are complaining
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In addition, as new semiconductor architectures such as generative AI and chiplets evolve rapidly, it is necessary to shift from logic-centric policies to support the entire value chain, including analog, power, EDA, and back-end processes.
🟦 Summary
JEITA’s latest recommendation calls for the next stage of the semiconductor strategy through a redesign of the “tax system, human resources, funding, and systems.” It emphasizes the need to build on the outcomes of Strategy 1.0 and implement more effective policies.
Rather than relying on excessive protectionism, the ideal is for the industry to grow self-sustaining through innovation and free competition. Of course, we need the support of the government, but it is important to create an environment where companies can compete with their technological capabilities and speed.
