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Japan Pledges $13bn to Boost Chip Sector Leadership Bid

Tokyo is set to issue nearly $59.8 billion in bonds to fund the commitment, raising concerns in some quarters about ballooning debt

Illustration picture of semiconductor chips on a circuit board
An Illustration picture of semiconductor chips on a circuit board.


Japan’s government has shown another sign of its intent to be a world leader in the chip industry again by announcing it will pump about $13 billion into its efforts this year.

Tokyo said it will allocate roughly 2 trillion yen in a bid to reclaim its past glory in the critical sector. The country is a leading provider of chipmaking tools and materials but lost its edge in manufacturing in recent decades and is now providing subsidies to chipmakers to build capacity.


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Some of the funds, which will be earmarked through a supplementary budget for this fiscal year, are expected to be used to support Taiwanese chipmaker TSMC and chip foundry venture Rapidus, which aims to manufacture cutting-edge chips in Hokkaido.

The chip industry allocation is part of Prime Minister Fumio Kishida’s 13.1 trillion yen spending promised in the 2023/24 extra budget which his government approved on Friday.

To fund the spending, Japan is set to issue close to 9 trillion yen ($59.8 billion) in bonds, raising some concerns about ballooning debt.


  • Reuters with additional editing by Sean O’Meara


Read more:

Japan’s Chipmaking Push ‘Impressive’: Euro Research Chief

‘Frustrated’ in US, TSMC Finds Japan Chipmaking a ‘Natural Fit’

Japan Joins Chip Curbs on China, Despite Unease in Tokyo

EU to Beef Up Japan Ties on Chips, AI to ‘De-Risk’ From China




Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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