Japan has been working to revive its semiconductor industry by offering incentives for foreign manufacturers like TSMC, aiming to strengthen the domestic sector.
The government has expanded its list of "core business sectors" to include companies producing chipmaking equipment, emphasizing national security and supply chain stability.
Japan's semiconductor aspirations are backed by significant financial investment, including 920 billion yen for Rapidus, a domestic chip maker focused on advanced technologies.
Historically, Japan was once a leader in the semiconductor field, controlling about half of the market in the late 1980s, but has faced increased global competition.
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