Japanese government considers using NTT and other holdings to support semiconductors

The Japanese government is reportedly considering issuing new government bonds that link dividends from NTT and other holdings to redemption funds to support the semiconductor industry.

The Nikkei and Yomiuri Shimbun reported that the Japanese government plans to include a plan to issue government bonds secured by dividends in its holdings in economic measures to be released this month as part of its semiconductor support measures to be pursued by around 2030.

This seems to have in mind Lapidus, which is seeking to foster itself as a high-tech semiconductor company.

Lafidus aims to mass-produce cutting-edge 2-nano products in 2027, but this requires 4 trillion yen, or about 36 trillion won more to be raised.

The Japanese government has already agreed to provide up to 920 billion yen and about 8.3 trillion won, but it has been reported that it has raised necessary funds on the fly through supplementary budgets without a mid-term funding plan.

Under the new support system, subsidies are provided before production, and after production, guarantees for investment or private loans are mainly changed, Nikkei explained.