Japan has unveiled a comprehensive plan to revitalize its semiconductor and artificial intelligence sectors, investing over 10 trillion yen ($65 billion) by fiscal 2030. Prime Minister Shigeru Ishiba emphasized that the initiative aims to attract more than 50 trillion yen in public and private investment over the next decade as part of broader economic revitalization efforts. This ambitious project will be financed through government subsidies, institutional investments, and debt guarantees, with details expected to be finalized in November.
The primary goal of the plan is to bolster Japan’s semiconductor supply chain, aiming to triple sales of domestically produced chips to over 15 trillion yen by 2030. At the heart of this revitalization is Rapidus, a state-backed semiconductor venture founded in 2022 with support from key Japanese companies like Toyota and Sony, as well as a partnership with U.S. tech giant IBM. Rapidus is targeting mass production of advanced 2-nanometer logic chips by 2027, with government support exceeding $2 billion so far.
Rapidus is seen as Japan’s last chance to reclaim a leadership position in the global semiconductor market, having lost dominance since the 1980s, when it controlled more than half of the global chip market. Today, Taiwan’s TSMC and South Korea’s Samsung lead the industry, with both planning to start mass production of 2-nanometer chips by 2025. However, Rapidus aims to bypass the competition by focusing on the unique architecture of 2-nanometer chips, which presents a significant opportunity for new entrants.
While Japan’s semiconductor industry faces challenges, including the need for rapid advancements in chip design and production, it remains a global leader in semiconductor materials and equipment. According to industry experts, Japan’s subsidies are vital, but success will require strategic planning, talent acquisition, and technology innovation.
In addition to supporting domestic ventures like Rapidus, Japan is encouraging foreign companies, including TSMC, Samsung, and Intel, to invest in its semiconductor ecosystem. These companies are vital in producing memory chips used in data centers for AI and cloud computing. By attracting such global leaders, Japan hopes to strengthen its semiconductor ecosystem and accelerate the growth of its AI and tech industries.
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