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)