Japan’s Ishiba Pledges Over $65 Billion Aid for Chip, AI Sectors

(Bloomberg) - Japanese Prime Minister Shigeru Ishiba pledged more than $65 billion of support for the nation's semiconductor and artificial intelligence sector over the next decade.

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Ishiba said he hoped aid of more than ¥10 trillion ($65.1 billion) for the sector by fiscal 2030 would serve as a catalyst to generate public and private investment of more than ¥50 trillion over the next 10 years.

Speaking at a press briefing after winning a vote in parliament to stay on as premier, Ishiba said he wanted to spread positive examples of regional revitalization like TSMC's chip plant in Kumamoto across the nation.

The prime minister said he would discuss the funding of the plans with the various ministries, but he wouldn't pay for the measures through deficit-financing bonds.

Earlier local media reports suggested the government was looking for a new way of providing funding for Japan's semiconductor sector. Ishiba's government is planning to issue bonds backed by assets it holds, including NTT shares, to provide subsidies to semiconductor companies, the Nikkei newspaper reported on Nov. 1.

Japan has earmarked about ¥4 trillion in previous extra budgets to revive its chip sector, including ¥920 billion for Rapidus Corp. in Hokkaido. Rapidus aims to mass produce advanced logic chips by 2027.

-With assistance from Yoshiaki Nohara.

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