Japan gov’t to issue new bonds to aid chip industry: media

TOKYO, Nov. 2 (Xinhua) — The Japanese government plans to issue new bonds backed by securities it holds, including shares in Nippon Telegraph and Telephone Corp., to raise funds for supporting its semiconductor industry, local media reported Saturday.
The initiative, aimed at strengthening Japan’s chip production capabilities, is expected to be integrated into an economic stimulus package set to be mapped out later this month, Kyodo News cited an informed source.
The move will benefit various semiconductor companies, including government-supported Rapidus Corp. and Taiwan Semiconductor Manufacturing Co., which is constructing new plants in Kumamoto Prefecture.
The support aligns with Japan’s goal to bolster its semiconductor and artificial intelligence sectors through 2030, addressing challenges in securing these crucial technologies domestically.
The bonds will be structured with collateral provisions to ensure future repayment, maintaining Japan’s fiscal discipline, according to the report.
Japan currently faces significant fiscal challenges, with the highest debt-to-GDP ratio among major developed nations. ■