Japan allocates $2.1 billion to semiconductor manufacturers in 2025

By Alimat Aliyeva

In fiscal year 2025 (April 2025 - March 2026), the Japanese government will allocate approximately 332.8 billion yen (about $2.1 billion) to support the research, development, and production of semiconductors, Azernews reports.

According to the Ministry of Economy, Trade, and Industry, these funds have been included in the initial budget request, which will be used in the preparation of the budget for the upcoming year. The subsidies are expected to be directed primarily to the semiconductor manufacturer Rapidus.

This initiative is part of Japan’s broader strategy to strengthen its domestic semiconductor industry, which has faced growing competition from countries like China and the United States.

With global semiconductor shortages disrupting supply chains, Japan aims to enhance its capabilities in this critical sector and reduce reliance on foreign suppliers, ensuring its technological and economic security. The support for Rapidus, a company focused on advanced semiconductor technology, underscores Japan’s commitment to maintaining a leading role in global tech innovation.