Japan is all-in on semiconductors, betting more aggressively on chip investments than the U.S. or Europe relative to its economy, per new data from a key government panel. 🌏 With subsidies totaling 0.71% of Japan’s GDP—triple the U.S.’s 0.21%—the country aims to reclaim its tech crown in the global chip wars.
💰 Here’s the breakdown:
🇯🇵 Japan: 3.9T yen ($25.5B) over 3 years
🇺🇸 U.S.: 7.1T yen ($46B) over 5 years
🇩🇪 Germany: 2.5T yen ($16.3B) over 5 years
While the U.S. recently pledged $6.6B to TSMC’s Arizona plants 💻, Japan is backing both TSMC’s Kumamoto factory and homegrown underdog Rapidus, which aims to produce cutting-edge chips by 2027. But there’s a catch: over 80% of Japan’s subsidies rely on unsecured funding like ‘GX bonds’ tied to carbon pricing—a risky move as global demand for chips grows.
🗣️ \"It’s like building a rocket while still designing the engine,\" says analyst Hiroya Masuda, highlighting concerns about long-term fiscal planning. With Western rivals locking in multiyear budgets, Japan’s reliance on quick-fix ‘supplementary budgets’ could leave its tech ambitions stranded. Will bets on green bonds and rapid approvals pay off? 💡 Stay tuned.
