Japanese government increasing high-tech investmentBloombergJapan’s Ministry of Economy, Trade and Industry is set to nearly quadruple its budget for supporting cutting-edge semiconductors and artificial intelligence (AI) development to about ￥1.23 trillion (US$7.9 billion) for the fiscal year starting in April. After Japanese Prime Minister Sanae Takaichi’s Cabinet signed off on it yesterday, the government’s budget plan would be discussed in parliament in the new year. For semiconductors, the ministry has earmarked ￥150 billion for state-backed chip venture Rapidus Corp, bringing cumulative government investment in the venture to ￥250 billion. For AI, ￥387.3 billion is budgeted for the development of domestic foundation AI models, strengthening data infrastructure and “physical AI” where AI controls robots and machinery. Special bonds of ￥1.78 trillion will be issued to help state-backed Nippon Export and Investment Insurance support Japanese investment into the US as part of the two countries’ trade agreement.
