Japan plans to allocate about ¥252.5 billion ($1.6 billion) in an additional budget to strengthen the country’s development of artificial intelligence and semiconductor technologies, according to the Ministry of Economy, Trade and Industry and a senior ruling party official.
The funding level is significantly lower than last year’s ¥1.5 trillion supplementary package. The government intends to shift most future support for these sectors into regular annual budgets, a move designed to ensure more stable, long-term financing.
Following approval of the supplementary budget by Prime Minister Sanae Takaichi’s cabinet on Friday, the plan now requires parliamentary endorsement. With the governing coalition holding a solid majority in the lower house, the measure is expected to pass smoothly.
Since launching a new semiconductor revival strategy in 2021, Japan has committed roughly ¥5.7 trillion to targeted projects, including Rapidus, Taiwan Semiconductor Manufacturing Company’s facilities in Kumamoto, and Micron’s plant in Hiroshima.
The ministry has also requested ¥100 billion in the supplemental budget to boost Nippon Export and Investment Insurance's capital. The institution is expected to play a central role in executing a $550 billion investment program under the US-Japan trade framework, according to Bloomberg News.
In addition, the ministry is seeking ¥93.7 billion to support private companies in securing rare minerals and to bolster national stockpiles of these critical resources. The initiative reflects Japan’s push to reduce reliance on China for economically strategic materials.
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