Japan’s ruling Liberal Democratic Party (LDP) is preparing to secure around ¥1 trillion ($6.5 billion) annually to strengthen the country’s semiconductor and artificial intelligence sectors, according to Yoshihiro Seki, a key lawmaker leading the government’s tech revitalization efforts.
Seki, who serves as secretary general of the LDP’s group promoting Japan’s chip-making industry, said on Thursday that most of the funding will be allocated through the regular national budget for the fiscal year starting in April. This marks a shift away from the government’s reliance on supplementary budgets, which have been the primary source of semiconductor support over the past several years.
“The move will make it easier for the government to secure funds in a stable and continuous manner,” Seki told reporters after an LDP meeting focused on semiconductor policy. The change underscores Tokyo’s intent to institutionalize long-term investment in key technology sectors rather than depend on ad hoc budget allocations.
Since 2021, Japan has committed approximately ¥5.7 trillion to reviving its domestic semiconductor and AI industries, much of it drawn from extra budgets. The funding has helped support major projects, including subsidies for new chip plants built by domestic firms and foreign partners such as Taiwan’s TSMC and U.S. chipmakers.
In last year’s supplementary budget alone, about ¥1.5 trillion was earmarked for these initiatives, representing the first phase of a broader government commitment to provide over ¥10 trillion in public support for chips and AI — a pledge championed by former Prime Minister Shigeru Ishiba. The LDP’s new ¥1 trillion annual target forms part of that wider funding framework.
The policy shift comes amid intensifying global competition in advanced technologies, as major economies — including the United States, South Korea, and the European Union — pour billions into domestic semiconductor ecosystems to safeguard supply chains and national security. For Japan, whose chip industry once dominated global markets but has since fallen behind, the renewed investment drive is seen as vital to restoring its technological leadership and ensuring resilience against future supply disruptions.
By embedding semiconductor and AI support into its regular fiscal framework, Tokyo aims to send a clear message: Japan’s ambition to reclaim its place at the forefront of global innovation is not a temporary policy — it’s a long-term national strategy.
