Japan announces $65 billion investment plan to boost domestic chip industry

Japan's Prime Minister Shigeru Ishiba announced a new plan to invest $65 billion in the country's chip and artificial intelligence industries. This initiative aims to strengthen Japan's chip supply chain amid global trade tensions. The plan includes subsidies and financial incentives, targeting companies like Rapidus, which plans to produce advanced chips in Hokkaido by 2027. The government expects the economic impact to reach around 160 trillion yen. Unlike last year's allocation of 2 trillion yen, this new plan will not use deficit-covering bonds for funding. The government aims for a total investment of 50 trillion yen from public and private sectors over the next decade.