The Japanese government has unveiled a substantial subsidy plan aimed at boosting domestic semiconductor production, totaling 368.6 billion yen, roughly 2.7 billion dollars. This funding will be channeled to enterprises as support for their semiconductor initiatives, with Nikkei noting the scope of the program. The subsidies are expected to cover as much as about one third of the investments companies undertake, easing capital requirements for new and expanded facilities. Eligibility for funding hinges on a firm’s commitment to operating at scale for the next decade, and manufacturers may be required to supply semiconductors to the home market if shortages arise.
In late October, Prime Minister Fumio Kishida announced a new framework designed to reinforce the nation’s economy, which is valued at about 266 billion dollars. The plan will see 39 trillion yen drawn from the state budget alongside 71 trillion yen potentially mobilized with private sector backing. The overall approach underscores a major collaboration between public funds and private capital to strengthen industrial resilience and secure supply chains.
Before these developments, Japan’s Ministry of Finance reported results from the first half of the current fiscal year, noting the nation experienced a historic trade deficit. The deficit reached 11 trillion yen, equivalent to approximately 73.37 billion dollars, highlighting ongoing pressures on the balance of trade that the new subsidy program seeks to counterbalance with strategic investments in high-tech manufacturing and domestic capacity.