Japan announced a plan to boost sales of domestically produced semiconductors fivefold by 2040 under Prime Minister Sanae Takaichi’s growth investment strategy (10/03).

The government set the 2040 goal at 40 trillion yen ($253.6 billion) in annual sales of Japan-made chips, up from roughly 8 trillion yen now, extending an existing 2030 target of 15 trillion yen.

Government Investment to Support Strategic Chip Production

Semiconductors are among several products the government has identified as strategically important for economic security.

Expanded public investment will focus on these products, with detailed roadmaps to be finalized in the coming months and incorporated into next year’s budget planning.

Historical Context: Japan’s Market Share Decline

Japan once controlled half of the global chip market in the 1980s. The following decade saw a decline due to U.S.–Japan trade tensions and a contraction of its domestic electronics sector. Currently, Japan holds less than 10% of the global market.

AI and Advanced Chip Design as Key Drivers

The government noted that AI is driving rapid growth in the design and manufacturing of advanced chips. Japan aims to position itself to capture this expansion.

PHOTO: THICHA STUDIO/GETTY IMAGES/CNBC

This article was created with AI assistance.

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