The source learned that Japan plans to support domestic production of advanced semiconductor products and batteries this year. The government hopes this will help eliminate the chip shortage that plagues important Japanese industries.
Using financial incentives, the government hopes to attract top US manufacturers. The goal is to ensure economic security by strengthening supply chains as part of an alliance with the United States.
The Japan Fund for the Support of the Local Semiconductor Industry has $ 1.8 billion. It is planned to use these funds to expand programs to support the production of advanced semiconductor products and batteries. The strategy is said to be approved in June.
Other countries allocate much more funds for the same purposes. Thus, the United States intends to spend about $ 40 billion, and China – about $ 120 billion. Given the difference in amounts, the Japanese government considers it appropriate to focus on only a few areas. More specifically, priority will be given to technological innovation aimed at reducing carbon dioxide emissions. The draft strategy calls for Japan to occupy 40% of the world’s next-generation power semiconductor products used in electric vehicles and similar products by the end of the decade. The second area is batteries. At the same time, Japan is going to regularly coordinate its actions with the US government to maintain a stable supply chain between allies. The idea is to decentralize manufacturing sites in a way that reduces the risk of supply disruptions during emergencies as partners seek to gain an edge over China.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
