The inclusion of quantum computing in this funding package underscores Japan's commitment to advancing next-generation computing capabilities.

Japan has announced an additional investment of ¥1.5 trillion (approximately $9.9 billion) aimed at bolstering its semiconductor and artificial intelligence sectors, which includes support for the ambitious moonshot foundry project, Rapidus Corp.

Rapidus Corp., a key player in Japan's semiconductor landscape, is expected to benefit significantly from this funding as it aims to develop advanced chip manufacturing capabilities by 2027.

While the specific allocation for Rapidus has not yet been disclosed, the Ministry of Economy, Trade and Industry (METI) is currently determining the funding amount.

In recent years, Japan has invested around ¥4 trillion in revitalizing its semiconductor industry, including substantial support for major companies like Taiwan Semiconductor Manufacturing Co. and Micron Technology.

This strategic funding is a direct response to intensifying global competition in advanced technologies, particularly from the United States and China.

Prime Minister Fumio Kishida has emphasized the importance of domestic semiconductor production for Japan's economic security, committing to over ¥10 trillion in funding for chips and AI development by 2030.

Additionally, subsidies have been granted to companies like Denso Corp. and Fuji Electric Co. to enhance production of silicon carbide wafers and power chips for electric vehicles, further illustrating Japan's proactive approach in the semiconductor sector.

The timing of these investments aligns with a Bank of Japan study indicating that the country's ultra-loose monetary policies have successfully avoided prolonged deflation, making this an opportune moment for tech investments.

These developments create a favorable environment for investors interested in the rapidly growing AI and semiconductor markets in Japan.

The recent budget approval by Japan's cabinet is expected to gain parliamentary approval by the end of 2024, paving the way for these investments to materialize.

With policymakers emphasizing the critical role of chips for both artificial intelligence and national security, Japan is positioning itself as a competitive player in the global tech spending race.