Japan’s additional budget, South Korea’s push for low-interest loans, a look at new chip subsidies and blueprints in various countries

2024/12/03

TechNews Financial News
November 30, 2024
Author Lin Yurou

Competition in the global semiconductor industry is becoming increasingly fierce, and governments around the world continue to launch large-scale subsidy programs. As the time comes to the end of 2024, some governments have already formulated a new round of subsidy programs to strengthen local chip manufacturing capabilities. In addition, Southeast Asian countries are also actively formulating semiconductor development strategies and establishing a more comprehensive semiconductor industry.

Japanese subsidy: 10 trillion yen

Japanese Prime Minister Shigeru Ishiba recently announced a 10 trillion yen semiconductor industry plan to promote the development of the domestic chip and AI industries. This plan is expected to spend more than 10 trillion yen (about 65 billion U.S. dollars) before fiscal 2030. The subsidies include the new startup Rapidus and other AI chip suppliers. It is expected to create economic benefits worth about 160 trillion yen for Japan.

According to data from the Ministry of Economy, Trade and Industry, the government has allocated 1.5 trillion yen in subsidies for chips and AI in this year's supplementary budget (as of March 2025), of which 1.05 trillion yen has been reserved for the development and research of next-generation chips and AI. In the field of quantum computers; another 471.4 billion yen will be set aside to support domestic advanced chip production. It has not yet been decided how much to allocate to Rapidus.

Expected subsidies for Germany: 2 billion euros

The German Ministry of Economic Affairs recently announced that it is preparing to invest billions of euros in new investments in the semiconductor industry, which will be provided to chip companies to develop modern production capabilities. According to relevant sources, the total amount of subsidies is expected to fall to about 2 billion euros.

A spokesman for the German Economy Ministry said the subsidy amount would be in the range of "low single-digit billion" euros, but declined to provide more specific information.

South Korea plans to promote low-interest loans: 14 trillion won

South Korea's Finance Ministry plans to roll out 14 trillion won (about $10 billion) in low-interest loans next year to support the country's semiconductor industry, which faces competition from China and uncertainty from the new U.S. administration. The loan, which will be disbursed by state-run banks, includes 1.8 trillion won, which will be used to install power transmission lines to support companies in the new giant chip cluster.

Czech Republic presents draft “National Semiconductor Strategy”: 20 billion crowns

The Czech government plans to triple domestic chip production by 2029, increase the number of employees to 9,000, and double the export of semiconductor technology, investing 300 million kronor (approximately NT$400 million) in chip research and development each year. The Czech Republic will cooperate with the European Chip Act and provide 20 billion crowns (approximately NT$26.6 billion) between 2025 and 2027 to support strategic investments.

Vietnam’s semiconductor development blueprint: no subsidies announced

The Vietnamese government recently formulated a semiconductor development blueprint for 2030 and extended the outlook to 2050. The first phase (2024~2030) uses geopolitical and labor advantages to attract foreign direct investment (FDI), build one of the global semiconductor human resources centers, and strengthen basic capabilities in each step from research, design, manufacturing to packaging and testing.

The Vietnamese government stated that it will strengthen the cultivation of high-tech human resources in the industry in the future, with the goal of training 50,000 engineers by 2030.

The second stage (2030~2040) becomes a global semiconductor and electronics center and develops the semiconductor and electronics industry combined with foreign direct investment; the third stage (2040~2050) becomes one of the world’s leaders in the semiconductor and electronics industry and controls Research and development in this field; the final stage (2040~2050) is to completely establish a self-reliant semiconductor industry ecosystem and achieve a leading position in certain steps and links of the production chain.

Malaysia plans to build Southeast Asia’s largest IC design park: no subsidies announced

The Malaysian government announced the creation of the largest IC design park in Southeast Asia, providing a number of incentives such as tax cuts, subsidies and free work visas, including office space subsidies, employment pass fee exemptions, relocation services and preferential corporate tax rates to attract global technology companies and investors.

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