Japan eyes $2.1B to support semiconductor sector in FY2025

The Japanese government will include 332.8 billion yen ($2.115 billion) in its fiscal 2025 budget bill to support mass production of next-generation semiconductors, Report informs via Jiji Press.

This was agreed between Finance Minister Katsunobu Kato and industry minister Yoji Muto.

In November, the government adopted a comprehensive economic policy package that calls for pumping more than 4 trillion yen in financial aid for mass production of next-generation semiconductors through fiscal 2030.

The move comes as Rapidus Corp. is building a plant in in the city of Chitose, Hokkaido, northern Japan, to begin mass production of next-generation semiconductors in 2027. The government hopes that its financial aid will encourage private investment in the company.

The government plans to submit a bill to provide financial aid to Rapidus during next year's ordinary Diet session. On Wednesday, it will hold the first meeting of an expert panel to discuss the bill.