The Japanese government has reduced its supplementary budget for artificial intelligence and semiconductors to $1.6 billion, but it is reported that future funding will primarily be provided through regular budgets, creating more stable and sustainable financing. Since 2021, a total of approximately $37 billion has been allocated within the framework of the country's semiconductor recovery strategy, with these funds directed towards projects such as Rapidus, TSMC's Kumamoto plants, and Micron's Hiroshima facility.
The editorial reports that Prime Minister Sanae Takaichi's cabinet has approved the supplementary budget bill, and parliamentary approval is expected to proceed smoothly as the ruling coalition holds a majority in the lower house. METI has requested the allocation of $650 million to the Nippon Export and Investment Insurance agency, aimed at securing the country's share in the implementation of the $550 billion investment program envisioned within the US-Japan trade agreement.
The supplementary budget allocates $608 million to private companies for the acquisition of rare earth elements and the strengthening of national reserves. These measures aim to reduce Japan's dependence on China for critical minerals and enhance the security of its supply chain.
According to expert assessments, although the reduction in the figure compared to last year's supplementary budget of $9.7 billion might create an impression of a policy retreat, the transition of funding to regular budgets is considered a more efficient approach for long-term strategic planning. Furthermore, the total package of $37 billion allocated demonstrates Japan's serious commitment to the revitalization of its semiconductor industry.