Japanese PM Shigeru Ishiba announced a US$65 billion (10 trillion yen) plan to boost Japan’s chip and AI industries, aiming for completion by fiscal 2030.

In summary:

  • The plan seeks to secure Japan's chip supply chain amidst global trade tensions, with a focus on mass production of next-gen chips.

  • Key beneficiaries include chip foundry venture Rapidus and AI chip suppliers; Rapidus aims to produce advanced chips in Hokkaido from 2027 with partners IBM and Imec.

  • The initiative is expected to generate an economic impact of 160 trillion yen.

  • No deficit-covering bonds will be issued to finance the plan; details on funding sources remain unspecified.

  • The plan is part of a broader economic package, targeting 50 trillion yen in public and private investment in chips over the next decade.

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Separately, and I'll have more to come on this

  • The government will meet with business and labor leaders to discuss 2025 wage negotiations, aiming to support wages amidst rising living costs.