Japan Prepares $13 Billion to Support Country’s Chip Sector

  • Economy Ministry seeks $12 billion in extra budget for chips
  • Country chasing tech leadership as geopolitical tensions rise
TSMC’s new factory in Kikuyo, Kumamoto Prefecture, Japan.Photographer: Toru Hanai/Bloomberg
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Japan’s Economy Ministry is preparing a total ¥2 trillion ($13 billion) in subsidies to drive investment in its chip industry in a bid to regain its status as a major semiconductor power.

The Ministry of Economy, Trade and Industry is seeking ¥1.85 trillion in an extra budget, on top of as-yet-unspent money for chip-related subsidies. Bloomberg earlier reported that Japan’s plans to allocate money to boost capacity to make and secure chips at home.