Japan Allocates $1.6B to Bolster AI and Semiconductor Sectors in Strategic Tech Push
Japan's cabinet has approved a ¥252.5 billion ($1.6 billion) supplementary budget to accelerate domestic AI and semiconductor development, signaling a shift from temporary funding to sustained investment in critical technologies. The MOVE aligns with Tokyo's broader ¥5.7 trillion ($36.5 billion) semiconductor revitalization program launched in 2021, which supports major projects including Rapidus, TSMC's Kumamoto expansion, and Micron's Hiroshima facility.
While smaller than last year's ¥1.5 trillion package, the allocation reflects Japan's strategic decoupling from Chinese supply chains, with dedicated funding for rare earths and export insurance. The budget now awaits parliamentary approval as policymakers transition industry support into regular fiscal planning.
