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According to a Nikkei Asia report today, the Japanese government is preparing to provide 160 billion yen in support for the local chip design industry, further shifting from the initial production focus to the upstream, with a view to narrowing the gap with China and the United States.

According to the report, Japan's Ministry of Economy, Trade and Industry (METI) plans to provide up to five years of funding for tech companies, startups and university projects focusing on the design and development of artificial intelligence, data centers, wireless base stations, self-driving cars, care robots, and energy-efficient chips.
The funding will come out of the FY 2024 supplemental budget and the proposed FY 2025 budget, with the initial support covering three years. Grantees will use the funds to cover the high cost of electronic design automation (EDA) tools, researcher salaries, and associated costs such as prototyping.
Since 2023, the department has approved about 50 billion yen (currently about 2,324 million yuan) in chip design and development assistance. Its support is increasing as the different steps of the development and production process are increasingly decentralized to different companies.
Japan has pledged more than 10 trillion yen (currently about 464.81 billion yuan) in public support for the semiconductor and AI industries through the 2030 fiscal year in a plan announced last November.