Japan targets fivefold rise in domestically made chip sales by 2040

By Makiko Yamazaki

TOKYO, ‌March 10 (Reuters) - ​Japan ​on Tuesday set a new target to boost sales of domestically produced ‌semiconductors fivefold by 2040 under Prime Minister ⁠Sanae Takaichi's growth investment strategy as it seeks to ‌catch up with global ‌rivals and tap the AI boom.

The government set the 2040 goal at 40 trillion yen ($253.6 ​billion) in annual sales of Japan-made chips, up from roughly 8 trillion yen now, ⁠extending an existing target of 15 trillion yen for 2030.

Chips are ​among dozens of products the government has designated as strategically important for economic ​security, and will be ‌the focus of expanded public investment to spur growth. Detailed roadmaps will ⁠be finalised in the coming months and incorporated into next year's budget planning.

Japan controlled half of the ⁠global chip market in the 1980s before collapsing in ​the following decade due to U.S.–Japan trade tensions and the contraction of its domestic electronics sector. The country ‌currently has less than 10% market share.

With AI now driving rapid growth ‌in the design and manufacturing of advanced chips, ⁠Japan must position ‌itself to capture ​that expansion, the government said.

($1 = 157.7100 yen)

(Reporting by Makiko Yamazaki; Editing by Kevin ‌Buckland)

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