The
country is a leading provider of chipmaking tools and materials
that lost its edge in manufacturing in recent decades and is now
providing subsidies to chipmakers to build capacity.
Some of the funds, which will be earmarked through a
supplementary budget for this fiscal year, are expected to be
used to support Taiwanese chipmaker TSMC and chip foundry
venture Rapidus, which aims to manufacture cutting-edge chips in
Hokkaido.
The chip industry allocation is part of Prime Minister Fumio
Kishida's 13.1 trillion yen spending promised in the 2023/24
extra budget which his government approved on Friday.
To fund the spending, Japan is set to issue close to 9 trillion
yen ($59.8 billion) in bonds, raising some concerns about
ballooning debt.
($1 = 151.3400 yen)
(Reporting by Tetsushi Kajimoto and Sam Nussey; Editing by
Chang-Ran Kim and Muralikumar Anantharaman)
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