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Japan To Increase Expenditure On Chip Production In The Country: Report

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The plan would focus on efforts to promote capital expenditure, such as by inviting U.S. manufacturers to invest in Japan so the two countries can strengthen chip supply chains

Amid a concerning chip crisis that has disrupted production for automobile manufacturers around the world, including Japan, the country is now reportedly planning to boost expenditure on increasing the local production of advanced semiconductors and batteries under this year’s growth agenda.

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Japanese newspaper Nikkei reported that the government will also promote large-scale investment to develop batteries for electric vehicles under the draft growth blueprint set to be finalised as early as June.

The paper said that in the growth strategy, the government will pledge to expand a current 200 billion-yen ($1.84 billion) fund to support the domestic chip making industry and help boost output of advanced semiconductors.

The plan would focus on efforts to promote capital expenditure, such as by inviting U.S. manufacturers to invest in Japan so the two countries can strengthen chip supply chains, the Nikkei said.

The draft strategy also calls for Japan to hold a 40 per cent global share in next-generation power semiconductors, used in electric vehicles and other applications, by the end of the decade.

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