Japan introduces $65 billion initiative to boost domestic chip production

[Shawn Knight]

In brief: Japan is borrowing a page from the US government's playbook. In the wake of the US Chips and Science Act, the island nation has announced a $65 billion economic plan designed to boost local semiconductor production and help stabilize supply chains.

Japanese Prime Minister Shigeru Ishiba revealed the $65 billion plan this week. Reuters saw an early draft of the proposal, which is scheduled to be submitted during the country's next parliament session, and notes its support of domestic chipmaker Rapidus among others.

The homegrown semiconductor manufacturer was founded in 2022 with support from several major Japanese tech companies including Sony and Kioxia, and entered into a strategic partnership with IBM in December 2022. The outfit expects to start mass production of advanced chips built on a 2nm process by 2027. It is an ambitious goal, but one that could be helped along with a significant infusion of cash.

Ishiba said the plan would not be backed by deficit-covering bonds, but stopped short in a press conference of detailing where funding would come from. According to the draft, the Japanese government expects the plan to generate more than a trillion dollars in economic impact.

Success is no guarantee for Rapidus or any other recipients of money from the program.

As Tom's Hardware highlights, it took many years for established players like TSMC to get to where they are today. The publication questions whether or not Japan has enough workers with the skills necessary to achieve their goals. As we have seen both domestically and abroad, finding workers with the smarts to get the job done can be a real challenge. Even China, with its heavy investments and accusations of IP theft, hasn't been able to compete toe to toe with leading chipmakers.

It remains to be seen whether or not Japan's investment will pay off, but it is hard not to think that increased competition will benefit the masses via lower prices and a more robust supply chain.

Image credit: Getty Images

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Japan introduces $65 billion initiative to boost domestic chip production

 

[NumberNine]

Intel will find a way to get the money.

 

[DrSuess]

Intel will find a way to get the money.

If they build a fab and produce chips in Japan they would deserve it.

 

[Kashim]

Intel will find a way to get the money.

Right, because it's so easy to get subsidies from a foreign nation. Intel still hasn't seen a dime from the CHIPS Act and that's on their home turf.

 

[p51d007]

Glad to see more companies trying to build "their own" chip fabs. The more that do will cut into CHINA. That has to be good for everyone, except the CCP.

 

[Cocojambo13]

As Tom's Hardware highlights, it took many years for established players like TSMC to get to where they are today" TSMC is just US exported semiconductor business. Japan is not TSMC, so they can do it much faster.

 

[toooooot]

It is almost like a lot of countries realized that the world is not a happy sunny place where everybody holds hands and sings. Good. What exactly do they expect China will do when it has enough power to defeat the Western Alliance? It will definitely dictate the rules. And for the last 20 years, the west happily helped it grow to prepare for this position while reporting profits to their shareholders.

 

[kiwigraeme]

It is almost like a lot of countries realized that the world is not a happy sunny place where everybody holds hands and sings. Good. What exactly do they expect China will do when it has enough power to defeat the Western Alliance? It will definitely dictate the rules. And for the last 20 years, the west happily helped it grow to prepare for this position while reporting profits to their shareholders.

Say wut! China is inextricably linked to the world of trade, import and export
Sure it wants Taiwan back , steals islands in the south sea , builds artificial ones , encroaches on Bhutan etc - tries to control neighbouring govts etc

End of day - even the Mighty USA can't dictate the rules that much - we would tell you to F yourself
think you have heard that saying owe the bank a $100 they have power over you , owe them a billion you have power over them ie no one , no matter how powerful can dictate the rules, unless they control something yet un-invented 100%

What country has had to pay off debts by handing over land ?

Foreign Policy is mostly about economic domination
If China becomes the number one economic power so what , if they give us better deal than the USA, should we not take it. The USA has screwed over friends countless times to favour their own

At the moment China is not that economically powerful, it's mainly the factory of the world . 1 year for company to setup elsewhere , we export our pollution and lack of care for employee rights to China - is that winning, Chinese working long days fewer rights .
In America you could always cut back the mandatory 2 weeks holiday a year to one to compete .
I see no reason America shouldn't have the freedom to force people to work nearly all year. That's what fellow americans think anyway, freedom to do what you want to others to drive rolling coal , to buy a AR15 and go postal , freedoms to control/take peoples lives who don't fit your world view ( in side and outside of The USA ), your most basic freedom to care only about yourself

China is never going to invade the west , except with things to sell, their army is crap. Even the greatest Army in the world USA can't invade Europe - would be suicide in a conventional war

If China makes better EVs , solar power then the problem then was other countries didn't invest enough, or were not good enough to

as for chips if Intel is struggling then doesn't bode well for China who tries to copy hard to do stuff - yes they have smart people. scientists etc
Remember same crap in 80s Japan will take over the world
I don't think you realise how ingrained the advantages of many established countries

For China to truly compete it needs to continue to bring up stds and wealth of the people in China .

One advantage is where goods become good enough and commodities eg a washing machine when their $400 top end machine is 95% as good as a miele but not as reliable

USA is part of the system grow your sales yoy, innovate or die, so do your part and be a good consumer, buy USA ( hilarious as most of the maga stuff was made in China like the Trump Bible and red hats )

Buy USA doesn't work - Walmart got big , as stuff local, same as Amazon only the middle class libs do that kind of thing buy local , ethically etc. like me , only buying free range eggs , not buying nestle or its brands like purina , maggi, hagen daz etc . I prefer to buy frozen berries from countries other than China as trust their QC more

 

[toooooot]

Remember same crap in 80s Japan will take over the world

Japan was not a communist country.
And every time you said China is not or will not, I wanted to add "yet" or "now."

I judge not by their culture but by the history. Dictators have this tendency to go of the rails and start completely unneeded wars out of pride or desire to gain fame before they die. Why should Xi be different especially since he is getting older?

It is kind of like when USSR was too young and too weak, it was not so openly aggressive. But few decades later, and they controlled half the Europe while threatening entire western world with nuclear apocalypse.

I am not looking toward what China can do now. But I am cautious regarding what their leader with near limitless power can decide to do when they are so strong that they can defeat the West.

When a tree is one meter, it is not unreasonable to assume it can grow 10 or 50 meters.
It is even more useful when it is not a tree but a growing communist regime.