Tokyo, 4 November, /AJMEDIA/
The government has decided to issue new bonds backed by securities it owns, such as its stake in Nippon Telegraph and Telephone Corp, to fund measures to support Japan’s semiconductor industry, a source close to the matter said.
The plan, aimed at helping semiconductor companies including government-backed chip venture Rapidus Corp, will be incorporated in an economic stimulus package expected to be mapped out this month, the source added.
The decision comes as the government has pledged to provide large-scale support to companies focusing on semiconductors and artificial intelligence until around 2030, as resource-poor Japan has struggled to procure access to such technologies at home.
Taiwan Semiconductor Manufacturing Co, the world’s biggest contract chipmaker that has begun building plants in Kumamoto Prefecture, southwestern Japan, will also be a target of the fresh economic package, according to the source.
As the new government bonds will be issued with the condition that the collateral could be used for future repayment, fiscal discipline would be maintained, the source said. Japan’s fiscal health is the worst among major developed economies.
