Name in original language
AI and Semiconductor Industry Strengthening Framework AI・半導体産業強化フレームワーク
Initiative overview
Approved by the Japanese Cabinet as part of the 'Comprehensive Economic Measures for Ensuring National Security and Sustainable Growth' on 22 November 2024, the AI and Semiconductor Industry Strengthening Framework is Japan's overarching policy commitment to reassert global leadership in AI and semiconductor technologies. The framework covers the seven-year period to FY2030. Core elements include: (1) Over JPY 10 trillion in cumulative public support for AI and semiconductor R&D, infrastructure, and production, delivered through subsidies administered by the Ministry of Economy, Trade and Industry (METI), NEDO programmes, and direct investment vehicles; (2) A target of inducing more than JPY 50 trillion in combined public-private investment over the next decade; (3) From FY2026, METI nearly quadrupled its annual AI and semiconductor budget to approximately JPY 1.23 trillion, up from approximately JPY 330B in FY2025; (4) Key beneficiaries include Rapidus (JPY 920B+ for 2nm chip production at Hokkaido), TSMC Japan (Kumamoto fabs), and five companies receiving JPY 72.5B in AI supercomputer development grants (Sakura Internet, KDDI, and others); (5) A new JPY 1T annual investment from the regular budget (from FY2026), signalling long-term commitment rather than one-off supplementary spending; (6) Specific FY2025 components include JPY 40B for innovative AI semiconductor fundamental research, JPY 1.05T for next-generation chip and quantum computing, and JPY 471.4B for domestic chip production support. The framework is implemented through METI, NEDO, and the New Form of Capitalism Realisation Council, with Japan's Growth Strategy Headquarters — chaired by the Prime Minister — serving as oversight body.
