Japan's PM Ishiba to Approve Record 115 Trillion Yen Budget for Fiscal 2025, Allocating 3,328 Billion Yen to Semiconductors

Dec 25, 2024, 01:13 AM

Japan's government, led by Prime Minister Ishiba, is set to approve a record-breaking fiscal 2025 budget on December 27, with the general account total expected to reach over 115 trillion yen, the highest ever. This budget includes approximately 3,328 billion yen allocated for supporting next-generation semiconductors, with a focus on aiding Rapidus Corp., a company aiming to start mass production of advanced semiconductors by 2027. The allocation for semiconductors is part of a broader economic strategy announced in November, which plans to provide over 10 trillion yen in public support to the semiconductor and AI industries over seven years. The budget's size reflects an increase in social security costs and anticipates the highest tax revenue on record, while also considering a rise in debt servicing costs due to an assumed interest rate of 2%.