Japan to quadruple spending support for chips and AI in budget

A prototype of a Rapidus 300mm wafer displayed at the Semicon Japan exhibition. The industry ministry has earmarked ¥150 billion for state-backed chip venture Rapidus, bringing the cumulative government investment in the venture to ¥250 billion. The industry ministry is set to nearly quadruple its budgeted support for cutting-edge semiconductors and artificial-intelligence development to about ¥1.23 trillion ($7.9 billion) for the fiscal year starting in April. Overall the Ministry of Economy, Trade and Industry's budget rose by about 50% from the previous year to ¥3.07 trillion, largely due to the jump in chips and AI spending. After Prime Minister Sanae Takaichi's Cabinet signed off on it Friday, the government's initial budget plan will be debated in parliament in the new year.