November 11, 2024 at 10:55PM
Japanese PM Shigeru Ishiba announced a US$65 billion (10 trillion yen) plan to boost Japan’s chip and AI industries, aiming for completion by fiscal 2030.
In summary:
The plan seeks to secure Japan’s chip supply chain amidst global trade tensions, with a focus on mass production of next-gen chips.
Key beneficiaries include chip foundry venture Rapidus and AI chip suppliers; Rapidus aims to produce advanced chips in Hokkaido from 2027 with partners IBM and Imec.
The initiative is expected to generate an economic impact of 160 trillion yen.
No deficit-covering bonds will be issued to finance the plan; details on funding sources remain unspecified.
The plan is part of a broader economic package, targeting 50 trillion yen in public and private investment in chips over the next decade.
Separately, and I’ll have more to come on this
The government will meet with business and labor leaders to discuss 2025 wage negotiations, aiming to support wages amidst rising living costs.
This article was written by Eamonn Sheridan at www.forexlive.com.
