On September 1, 2026, Chinese media outlet China Economic Net pointed out that while the Japanese government is making massive investments toward the revitalization of the semiconductor industry, many challenges still remain to achieve commercial success.

The Japanese government has designated the semiconductor industry as one of the "major products, technologies, etc. in 17 strategic fields" and has a plan to invest a cumulative 68 trillion JPY by fiscal year 2040. It aims to revitalize the domestic semiconductor industry by focusing on cutting-edge fields such as generative AI. Approximately 250 billion JPY has already been invested in Rapidus, which aims for mass production of advanced semiconductors, and the Ministry of Economy, Trade and Industry plans to add another 150 billion JPY in fiscal year 2027. Furthermore, with a plan to provide research and development subsidies of approximately 2.6 trillion JPY, the total government support is expected to reach approximately 3 trillion JPY.

Meanwhile, Japan's semiconductor industry accounted for more than half of the global market in the 1980s, but its current global share has declined to less than 10%. The media outlet cited delays in technological innovation, lack of corporate innovation and flexibility, and changes in the competitive environment with the United States regarding the Japan-U.S. Semiconductor Agreement as background, and then pointed out three challenges for revitalization.

The first is "technology gap," stating, "While Japan remains at 40-nanometer technology domestically, Rapidus aims to transition to a 2-nanometer process. With a lack of mass production technology and experience, it is uncertain whether stable customers and sufficient orders can be secured."

The second is "human resource shortage," stating, "According to the Ministry of Economy, Trade and Industry, the number of employees in the semiconductor industry has decreased by about 30% over the past 20 years. In addition to issues such as a declining birthrate, aging population, and human resource development, the shortage of engineers due to intensifying global competition for advanced semiconductors is hindering industrial reconstruction."

The third is "Japanese government's fiscal situation," stating, "Rapidus estimates that over 7 trillion JPY will be required by fiscal year 2031, and an expansion of government support could lead to a fiscal burden. While the semiconductor industry requires massive initial investment, it also carries significant risks such as research and development failures and sluggish demand."

The article concluded by stating, "The revitalization of the semiconductor industry cannot be achieved solely through financial investment; technological innovation, human resource development, and the establishment of an industrial ecosystem are indispensable. The success or failure of Japan's semiconductor revival depends not on the size of the investment, but on its ability to respond to fierce market competition and achieve sustainable commercialization." (Translation/Editing by KUNIYUKI HARA)