Japan’s ruling party, the Liberal Democratic Party (LDP), has appointed Daishiro Yamagiwa as the new chairman of its semiconductor promotion group. This move comes as the government aims to enhance funding for the semiconductor industry, a crucial sector for the country’s economy.
Yamagiwa, a former economic revitalization minister, takes over from Akira Amari, who was a strong advocate for Tokyo’s efforts in the semiconductor field until he lost his parliamentary seat in the recent national election.
Prime Minister Shigeru Ishiba has pledged over ¥10 trillion ($65 billion) in fresh public support for Japan’s semiconductor and artificial intelligence sectors. This commitment is in addition to the approximately ¥4 trillion that has been allocated to these industries in the last three supplementary budgets.
One of the key recipients of this funding is Rapidus Corp. in Hokkaido, which aims to mass-produce advanced logic chips by 2027. The LDP group, led by Yamagiwa, is determined to ensure the success of these initiatives and secure Japan’s position in the global semiconductor market.
In order to facilitate the new funding mechanism, the LDP group is expected to introduce relevant legislation in the upcoming parliamentary session. With the LDP and its coalition partner Komeito no longer holding a majority, they will need support from opposition parties to push through their policy agenda.
Yamagiwa’s appointment comes after he resigned from his ministerial position in 2022 due to alleged connections to the Unification Church, a controversial group in Japan. He has since severed ties with the organization, according to his website.
The economic stimulus package, which includes the semiconductor funding, will involve a mix of funding methods, as outlined in a draft seen by Bloomberg. These methods include transfers from special accounts, utilizing returned money, issuing bonds, and utilizing green transformation bonds.
The funding will be allocated towards next-generation chip development, mass production of power chips, and providing financial support through investments and debt guarantees. The government aims to submit the necessary legislation to enable this framework in the upcoming parliamentary session.
Overall, Japan’s efforts to boost its semiconductor industry are crucial for maintaining its competitiveness in the global market and driving economic growth in the years to come. With the appointment of Yamagiwa and the commitment of substantial funding, the country is taking proactive steps to secure its position as a leader in the semiconductor sector.
