By By Takaya Yamaguchi
TOKYO (Reuters) – Japan’s government will propose a $65 billion plan to boost its chip industry with subsidies and other financial assistance over a period of “multiple years”, a draft seen on Monday (NASDAQ:MNDY) by Reuters showed.
The plan, with financial support worth 10 trillion yen ($65.10 billion) or more, comes as countries look to strengthen their control over chip supply chains after global shocks including trade tensions between the United States and China.
Japan’s government intends to submit the plan, including bills to financially help mass production of next-generation chips, to the next parliament session, the draft shows.
It specifically targets chip foundry venture Rapidus and other suppliers of chips for artificial intelligence.
Rapidus is headed by industry veterans and is targeting mass production of cutting-edge chips on the northern island of Hokkaido from 2027 in partnership with IBM (NYSE:IBM) and Belgium-based research organisation Imec.
Last year, the Japanese government said it would allocate some 2 trillion yen ($13 billion) to support its chip industry.
The latest plan is part of the government’s comprehensive economic package to be approved by cabinet on Nov. 22 and will also call for a total of 50 trillion yen public and private sectors investment in chips over the next 10 years.
The government expects the economic impact to total around 160 trillion yen, according to the draft.
($1 = 153.6000 yen)