Japan aims to revive semiconductor industry

Japan's Economy, Trade and Industry Ministry has made public an action plan to help revive the country's semiconductor industry.

The ministry on Monday held a meeting where it presented the plan to discuss strategies for the country's semiconductor and other digital industries.

Minister Hagiuda Koichi said the key to growth after the coronavirus pandemic is to revitalize a broad range of digital investment in the country as a whole.

In the first of three stages outlined in the action plan, the government will provide financial aid for several years to invite advanced chip makers to set up plants in Japan to produce chips for automated driving and data processing centers.

The plan cites the need for Japan to improve its industrial base and increase its economic security.

The plan comes as Taiwanese chipmaker TSMC announced this month that it will build a new factory in Kumamoto Prefecture, southwestern Japan.

Under the plan, the government will also offer financial support to refurbish chip factories in the country.

In the event that shortages occur in chips used for home appliances and medical devices, the government will provide financial help to domestic manufacturers to prevent a negative impact on people's lives.

In the second and third stages, the government will work with the United States and other nations in research and development of next-generation chip technologies.