Japanese Prime Minister Fumio Kishida has vowed to craft legislation aimed at supporting the local production of advanced semiconductors by helping manufacturers secure enough funding, Kyodo News reported.
The Japanese government will support the chip industry's investment and research and development programs "on a large scale and systematically."
"I will be seeking the early submission to parliament of a bill necessary for the mass production of next-generation chips," which will require heavy investment, Kishida told reporters after inspecting a Rapidus Corp. factory under construction in Hokkaido, northern Japan.
He said the government will support the chip industry's investment and research and development programs "on a large scale and systematically."
Government sources said the government is considering providing additional funding as well as guarantees on loans to companies in the domestic chip industry.
The Economy, Trade and Industry Ministry has pledged to offer a total of 920 billion yen ($5.9 billion) in subsidies to Rapidus to promote technologies critical to the country's economic security.
Rapidus is currently constructing its new plant in Hokkaido's Chitose and aims to begin manufacturing state-of-the-art 2-nanometer semiconductors with the technical backing of US tech giant IBM Corp. in 2027.
The Japanese government-backed venture was established in 2022 by eight major Japanese companies, including Toyota Motor Corp. and Sony Group Corp., Mainichi Shimbun also reported.
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