Japanese Ministry of Finance: Japanese spending on chip industry excessive; Ministry of Economic Affairs says that expenditure is comparable to that of the US, Europe and China

The Ministry of Economy, Trade and Industry said Friday that the amount of financing Japan has given to the semiconductor industry is on par with that of the United States, Europe and China in relation to each country’s gross domestic product. excessive.

Currently, many governments are trying to secure chipmakers by offering large investments.

During a meeting of a panel of experts to discuss how to vitalize the chip industry, the Ministry of Economy presented data showing the percentage of financial support given by each country in relation to their GDP.

Japan has provided more than ¥3.9 trillion, accounting for 0.68% of the country’s GDP. Chinese spending accounts for 0.79% of GDP, Germany’s 0.71% and the United States’ 0.50%.

At a meeting in April, the Treasury Department pointed out that Japan gave 0.71% of its GDP, far more than the United States’ 0.21% and Germany’s 0.41%.

The difference in percentages resulted from what the two ministries included in their calculations. The Ministry of Finance focused on expenditures such as factory construction, while the Ministry of Economy also included preferential tax treatments in its calculations.

Regarding GDP, the Ministry of Finance also used the nominal figure, while the Ministry of Economy used the real figure, excluding changes in price fluctuations.

Very few have objected to providing financial support to the semiconductor industry as the funding is expected to attract private sector capital.

The Ministry of Finance emphasizes that it is essential that the government selects which industries and companies are eligible for government support and focuses its financial resources on them.

During the Economy Ministry’s meeting with experts, panelists also confirmed that they will consider a system to support Japanese chipmaker Rapidus Corp. to help raise funding as the company aims to produce the most advanced semiconductor chips domestically.

Details are still being considered, but the panel presented an option where the government could guarantee loans to Rapidus.