Japan's Semiconductor Subsidies

The targets

By 2030, raise the combined semiconductor-related sales of companies producing chips in Japan to more than 15 trillion yen, from about 5 trillion yen in 2020.

A Cabinet decision on November 22, 2024 set out more than 10 trillion yen of public support for AI and semiconductors over the seven years to fiscal 2030, aiming to draw over 50 trillion yen of public and private domestic investment over ten years.

Subsidies for new fabs

Under the advanced semiconductor provisions of Japan's 5G Promotion Act, METI certifies plans for advanced chip fabs and sets a maximum subsidy for each. Seven plans had been certified as of October 2026. The amounts are ceilings; payments depend on the plans being carried out.

JASM Fab 1 is shown at the amount after METI's October 2026 change to the certified plan.

Rapidus: research funding rather than a fab subsidy

Rapidus is funded differently: through commissioned research under the post-5G fund. After METI approved its fiscal 2025 plan, the ceiling on this research budget reached ¥1,722.5bn. Rapidus's implementation plan aims to start mass production of 2 nm chips in the second half of fiscal 2027 and to list its shares around fiscal 2031.

Where the money goes

The supported fabs are spread across Japan: JASM in Kumamoto, Kioxia in Mie and Iwate, Micron in Hiroshima and Rapidus in Hokkaido. See semiconductor fabs in Japan and the regions pages for where they are, and Japan's market share for the industry the policy aims to strengthen.

Sources

1. METI: certified specified semiconductor production facility plans (list of maximum subsidies)
2. METI: Semiconductor and Digital Industry Strategy (July 2023), based on OMDIA data for FY2021
3. METI: Current situation of the semiconductor and digital industries (December 23, 2025)
4. METI: Rapidus project review and FY2025 budget approval (March 31, 2025)
5. METI: outline of Rapidus's implementation plan

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