TOKYO (Reuters) – The Japanese government will allocate nearly 2 trillion yen ($13 billion) to support efforts to boost the chip industry, marking the latest move by the Asian country to restore its former glory in the vital sector.
The country is one of the leading countries in providing chip-making tools and materials, which has lost its manufacturing superiority in recent decades, and is now providing subsidies to chip manufacturing companies to build capabilities.
Some of the funds, which will be allocated through a supplementary budget this fiscal year, are expected to be used to support Taiwanese chipmaker TSMC (2330.TW) and its Rapidus chip foundry project, which aims to manufacture advanced chips in Hokkaido.
The allocation to the chip industry is part of Prime Minister Fumio Kishida’s 13.1 trillion yen spending promised in the 2023/24 supplementary budget approved by his government on Friday.
To finance spending, Japan is set to issue nearly 9 trillion yen ($59.8 billion) of bonds, raising some concerns about debt inflation.
($1 = 151.3400 yen)
(Reporting by Tetsushi Kajimoto and Sam Nosi – Prepared by Muhammad for the Arabic Bulletin) Editing by Chang-ran Kim and Muralikumar Anantharaman
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