Japan to spend another $13 billion on chip and AI industries

SGGP 11/10/2023 06:24

The Japanese government is seeking 2 trillion yen (about $13.2 billion) in budget funding to support chip production and advances in artificial intelligence (AI) technology.

Japan is trying to revive its semiconductor industry. Source: Bloomberg

The Ministry of Economy , Trade and Industry (METI) said that the additional budget will be used to support the development of a prototype production line by Japanese chipmaker Rapidus and a research center by Intel, as well as support advanced semiconductor design; the construction of a second TSMC chip plant in Kumamoto Prefecture on the southernmost main island of Kyushu; support a new plant by Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) in Miyagi Prefecture, northeastern Japan; and support the development of power semiconductors - important components in electric vehicles.

Additionally, more than $1.3 billion in funding will be earmarked for areas including supercomputer development to process data for AI learning models.