Chip war: Japan will invest US$65 billion to become a global AI powerhouse

The Japanese government announced an ambitious plan to invest US$65 billion by 2030 with the aim of boosting the national semiconductor industry and becoming a global power in artificial intelligence (AI).

Prime Minister Shigeru Ishiba presented the strategy that provides for subsidies and other financial incentives to strengthen the chip supply chain and expand semiconductor production capacity in the country.

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This plan is a response to the growing tension between the United States and China, which has affected the global supply of chips. With the new initiative, Japan hopes to not only ensure its technological independence, but also position itself as one of the main suppliers of chips for AI applications.

The investment also includes direct support for Rapidus, a Japanese joint venture specializing in cutting-edge semiconductors, which seeks to begin mass production of high-tech chips on the island of Hokkaido from 2027, in partnership with IBM and Belgian organization Imec. .

The plan is part of the government’s broader economic package, which envisages a total investment of 50 trillion yen in collaboration between the public and private sectors over the next ten years. According to estimates, the economic impact of this program could reach 160 trillion yen, further strengthening Japan’s position in the global technology race.

Although financing does not depend on issuing bonds to cover deficits, the government will meet with representatives of companies and unions to discuss the distribution of benefits and the impact on salary negotiations. The initiative also aims to stimulate wage growth, combating the rising cost of living that is currently putting pressure on Japanese households.

The massive investment in technology aims to not only put Japan in a prominent position in the AI ​​market, but also ensure the security and resilience of the supply chain, a strategic factor in times of geopolitical instability and shortages of essential components.

Source: Reuters