Thu. Nov 14th, 2024

Japan pledges $65 billion to support chips and artificial intelligence

Japan promises to allocate $65 billion to support chips and artificial intelligence

According to the draft package, which Bloomberg has learned, the new funding structure, separate from the previously allocated funds amounting to about 4 trillion yen, will be laid out in a package of economic stimulus measures, which should be aimed at obtaining an economic effect of about 160 trillion yen.

The additional funding will help Tokyo close the gap with world powers in chip support. The U.S. and its allies are seeking to outpace China in semiconductor AI capabilities, an area policymakers now see as essential to economic security.

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Tokyo's increased support for the sector is also underpinned by the need to spur economic growth domestically. and regional levels. Speaking at a press conference on Monday after winning parliamentary elections to remain prime minister, Ishiba said he would like to spread positive examples of regional revival, such as TSMC's Kumamoto chip factory, across the country. .

Global demand for chips is expected to triple to 150 trillion yen over the next 10 years, the framework program aims to provide more than ¥10 trillion in government aid through methods such as outsourcing, financial support and legislative measures to increase the predictability of private companies, the draft said.

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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