Japan's spending on the semiconductor industry has sparked a debate between the Finance Ministry and the Economy, Trade and Industry Ministry. The Finance Ministry claims that Japan's spending on the chip industry is excessive, while the Economy Ministry argues that it is on par with other major economies.
According to the Economy Ministry, Japan has allocated over ¥3.9 trillion to the semiconductor industry, which accounts for 0.68% of the country's GDP. This is comparable to China's spending, which accounts for 0.79% of its GDP, Germany's spending at 0.71%, and the United States' spending at 0.50%. The Economy Ministry's calculations include preferential taxation treatments in addition to expenses like plant construction.
On the other hand, the Finance Ministry focuses on expenses like plant construction and believes that Japan's spending is excessive. The Finance Ministry argues that it should have the authority to select which industries and companies are eligible for government aid and allocate financial resources accordingly.
The debate highlights differing perspectives on the appropriate level of government support for the semiconductor industry in Japan. The outcome of this debate could have significant implications for the future of the industry in the country.
[9ceeadae]