Ministry of Economy, Trade and Industry Building in Chiyoda Ward, Tokyo
20:00 JST, June 1, 2024
The amount of funding Japan has given to the semiconductor industry is on par with the US, Europe and China in each country’s GDP, the Economy, Trade and Industry Ministry said Friday, denying the Finance Ministry’s claim. Excessive.
Currently, many governments are trying to protect chipmakers by providing large investments.
At a meeting of a panel of experts to discuss how to revive the chip industry, the economy ministry presented data showing the percentage of financial assistance each country receives relative to their GDP.
Japan contributed more than ¥3.9 trillion, accounting for 0.68% of the country’s GDP. China accounts for 0.79% of GDP, Germany accounts for 0.71% and the US accounts for 0.50%.
At the April meeting, the Finance Ministry pointed out that Japan contributed 0.71% of its GDP, higher than the 0.21% provided by the US and 0.41% provided by Germany.
The difference in percentages was due to what the two ministries included in their calculations. The Ministry of Finance focused on costs such as plant construction, while the Ministry of Economy also included preferential taxation treatments in its calculations.
For GDP, the Ministry of Finance also used the nominal figure, while the Ministry of Economy used the real figure, which avoids changes in price fluctuations.
Few have objected to financing the semiconductor industry, as the fund is expected to attract capital from the private sector.
The Ministry of Finance insists that it is necessary for the government to select which industries and institutions are eligible for government assistance and focus its financial resources on them.
In a meeting with experts from the Ministry of Economy, the board members confirmed that they will consider a system to help finance the purchase of Japanese chipmaker Rapidus Corporation as the company aims to produce more advanced semiconductor chips domestically.
The details are still being considered, but the committee floated an option where the government could guarantee loans to Rapidus.