A key focus of this initiative is the domestic chipmaker Rapidus, which was established in 2022 with support from major Japanese tech firms and aims to mass-produce next-generation chips.

Ishiba highlighted the necessity for Japan to enhance its competitiveness in the semiconductor sector, especially as global rivals like China ramp up their investments.

Ishiba also expressed a desire to replicate successful regional initiatives, such as TSMC's chip plant in Kumamoto, to foster national growth.

The cabinet is expected to approve this revitalization plan on November 22, 2024, marking a significant step in Japan's efforts to enhance its semiconductor sector.

Despite these ambitious goals, Japan faces challenges, including a potential shortage of skilled engineers, as the country has not been a leader in semiconductors for years.

In contrast, China is significantly investing in its semiconductor industry, leading globally in the number of new chip plants under construction, which intensifies competition.

The plan will be presented to the upcoming parliamentary session, where it will include measures to support the mass production of advanced chips.

Japanese Prime Minister Shigeru Ishiba has unveiled a significant initiative to invest over 10 trillion yen, roughly $65 billion, in public support for the AI and semiconductor industries through fiscal 2030.

This funding aims to stimulate both public and private investments, potentially exceeding 50 trillion yen over the next decade.

The investment plan is designed to bolster Japan's semiconductor supply chains, particularly in light of escalating political tensions between the U.S. and China.

To finance this initiative, the Japanese government is considering innovative funding methods, including issuing bonds backed by government-held assets like NTT shares.

This initiative is part of a broader strategy aimed at closing the technological gap with countries like the U.S., which are heavily investing in AI and semiconductor capabilities.