Japan needs to spend $7bn a year on chips, says Higashi

Japan needs to spend $7bn a year on chips, says Higashi

Japan should offer tax breaks in the next fiscal year to produce $88 billion in investment over the next decade to revive domestic chipmaking.

$6.8 billion in supplementary spending was approved by the government last week. “I expect this level of funding to continue at least for the next few years,” Higashi told Bloomberg, “without initial investment from the government, we won’t be able to reach a point where private companies will put in the money. The government will have to play a central role until things are established.”

Japan made reviving its chip industry a national project this year, aiming to boost the annual revenue of domestic Semiconductor companies roughly three times to 13 trillion yen ($114 billion) by 2030.

Tax breaks for R&D and cutting water and utility costs for chipmakers should be considered, said Higashi.

@Unless Japan secures its industrial foundation, we will have to rely on others for chip intellectual property and they will take away all added value,” he said Higashi, “various industries need to be mindful of that possibility.”

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