It is reported that Japan plans to allocate about ¥252.5 billion (US$1.6 billion) in an extra budget to support AI and semiconductor development. The amount is lower than last year’s ¥1.5 trillion (US$9.59 billion) supplementary budget, as the government shifts toward regular budget funding for these sectors. Prime Minister Sanae Takaichi’s cabinet approved the proposal on 28 November 2025, and the measure now awaits parliamentary approval. Japan has dedicated around ¥5.7 trillion (US$36.5 billion) to revive its semiconductor industry since launching a new strategy in 2021, backing projects involving Rapidus, TSMC’s Kumamoto foundries, and Micron’s Hiroshima facility.
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