According to the draft growth blueprint for this fiscal year to be finalized as early as next month, the Japanese government plans to increase spending to promote the production of advanced semiconductors and promote large-scale investment in the development of batteries for electric vehicles.

The Japanese government will pledge to expand the existing 200 billion yen (1.84 billion U.S. dollars) fund size to support the domestic chip manufacturing industry and help boost the output of advanced semiconductors.

The plan will focus on promoting capital expenditures, such as inviting US manufacturers to invest in Japan to strengthen the chip supply chains of the two countries.

The goal of the draft strategy is that by 2030, Japan will occupy 40% of the world's share of next-generation power semiconductors used in electric vehicles and other applications.