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Japanese Companies To Get Government Funds For Semiconductors, EVs

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Aiming to counter Chinese influence, Japanese firms, including Isuzu and Sojitz, will be backed with 100 billion yen to develop electronics, semiconductors, and EV supply chains across Southeast Asia.

Fifteen Japanese companies, including Isuzu Motors and trading house Sojitz, will receive government funding to develop electronics supply chains in Southeast Asia, with investments estimated at 100 billion yen ($679 million).

This initiative is part of a broader effort by Japan’s Ministry of Economy, Trade and Industry, which will soon announce 13 demonstration projects receiving 35 billion yen ($238 million) in state assistance.

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Key aspects of the initiative include investments in the semiconductor sector, with Tokyo supporting Mitsumi Electric’s chip packaging production line in the Philippines and Tokuyama’s polycrystalline silicon operations in Vietnam.

Additionally, the automotive sector will benefit from projects such as Isuzu and Mitsubishi Corp.’s electric vehicle and battery exchange station pilots in Thailand, which aim to establish a robust battery supply chain.

These funded projects across ASEAN member states aim to enhance Japan’s competitive edge in the region and counter Chinese influence. The support is also part of a 140 billion yen subsidy program introduced last year targeting investments in the Global South.

Japan is also extending its efforts to sustainable energy projects. Sojitz and Green Power Development will receive funds to produce sustainable aviation fuel (SAF) in Southeast Asia, increasing SAF usage to 10% of all aviation fuel by 2030.

Furthermore, Toyo Engineering and Itochu will receive support to supply green hydrogen to ammonia production facilities in Indonesia, promoting low-carbon energy solutions. This strategy seeks to mitigate Japan’s reliance on China and bolster its presence in Southeast Asian markets.

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Shubha Mitra
Shubha Mitra
Shubha is a journalist at EFY. She is keenly interested in India's evolving electronics ecosystem. Her focus revolves around government policies, legislation, and public-private partnerships related to the industry.

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