Japan has denied the Finance Ministry’s claim that its financing of the semiconductor industry is excessive. The Economy, Trade and Industry Ministry stated that its funding is comparable to that of the US, Europe, and China proportionate to each country’s gross domestic product (GDP). The assertion was made during a meeting of a panel of experts held to consider ways of invigorating the chip industry. Japan has given over JPY 3.9tn ($36bn) towards the semiconductor sector. This corresponds to 0.68% of the country’s GDP. Germany has provided 0.71% of its GDP, China 0.79%, and the US 0.50%. At an April meeting, the Finance Ministry claimed that Japan offered 0.71% of its GDP, compared with the US’ 0.21% and Germany’s 0.41%. The difference in calculations arose because the Finance Ministry did not include preferential taxation in its estimates, unlike the Economy, Trade and Industry Ministry. It also used nominal GDP figures, rather than real GDP figures.
The provision of financial assistance to the semiconductor industry has met with little objection, given that it is expected to draw private sector capital. However, the Finance Ministry contends that it is important for the government to decide which firms and industries should be eligible for state aid.
A panel member confirmed that a system would be considered to assist Rapidus, a Japanese chipmaker, in its efforts to raise funds. The company intends to produce the most advanced semiconductor chips within Japan. Details of the system remain under consideration, but one option mentioned was for the government to offer loan guarantees to Rapidus.
