Japanese PM promises new law to support chip firms
Japan's Prime Minister Fumio Kishida has pledged to boost domestic mass production of advanced semiconductors and related R&D with new legislation.
The PM made the comments during a site visit in Hokkaido where chipmaker Rapidus is building an advanced semiconductor plant.
According to multiple new reports, Kishida told reporters: "Domestic investment in the semiconductor field needs to be expanded continuously. Japan will make investment for mass production and support research and development on a large scale with a plan over multiple fiscal years."
The government is already heavily committed to its domestic chip sector. Rapidus intends to build an advanced fab in Hokkaido that will offer a 2nm-class process technology and advanced packaging by 2027. So far the government has sanctioned subsidies of up to YEN 920 billion for the Rapidus project.
However, this latest government statement is just the latest evidence of state backing for the chip sector. Last year, the Japanese government allocated USD 13 billion in an attempt to re-establish Japan as a global electronics leader. The money came from a supplementary budget for the fiscal year, funded with a USD 59.8 billion bond sale. It is part of an on-going effort to boost Japan's three semiconductor hubs located in Kyushu, Tohoku, and Hokkaido.
Kyushu is regarded as a semiconductor hotspot, thanks to the presence of JASM (TSMC’s Kumamoto Plant). Prior to TSMC’s entry, Sony and SUMCO were operating in the region for several years. Meanwhile Tohoku is home to the Renesas Yonezawa plant, and major raw wafer producers SUMCO and Shin-Etsu, while Hokkaido was chosen by Rapidus as its base.
