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Japan to subsidize domestic chipmaking beyond the cutting edge

$2.8bn plan covers EV-related chips, production equipment and materials

A power chip module produced by Rohm. Many countries increasingly see the domestic supply of semiconductors as crucial for economic security. (Photo courtesy of Rohm)

TOKYO -- Japan will shoulder a portion of capital investments related to a variety of semiconductors in exchange for 10 years of guaranteed production, expanding incentives for domestic chip manufacturing beyond cutting-edge products.

The country designated semiconductors as a product critical to daily lives and economic activities under an economic security law enacted in 2022. It will dedicate 368.6 billion yen ($2.8 billion) from a 1.3 trillion yen supplementary fiscal 2022 budget to fund the new subsidies designed by the Ministry of Economy, Trade and Industry.

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