The Japanese government on Monday released draft plans for local industrial clusters to attract investment, with eight of 10 regions identifying semiconductors as a target sector and seven choosing green industries.
The initiative is aimed at fostering economic growth in local areas by creating hubs for businesses in competitive and advanced industries, as well as supporting existing local industries in the fields.
The government will examine the draft proposals and finalize each plan, reflecting them in its future regional strategy to be formulated as soon as June. It also plans to support the initiative through grants, infrastructure development and regulatory easing using special economic zone systems.
“We will strategically develop (the clusters) while working closely with local governments. No support will be spared for municipalities eager to take part,” Prime Minister Sanae Takaichi said at a meeting Monday.
Study groups led primarily by local bureaus of the Ministry of Economy, Trade and Industry discussed the plans with an eye to 17 strategic fields identified by the Takaichi government as important sectors for investment, including artificial intelligence, semiconductors and shipbuilding.
The regions selected multiple sectors based on their existing industries and the presence of companies expanding into them.
Areas identified as potential chip hubs included the northernmost region Hokkaido, where Japanese chip venture Rapidus Corp is based, and the southwestern Kyushu region, which hosts a plant belonging to Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker.
On industries related to green transformation, regions selecting the sector included Tohoku, where wind power initiatives are underway, as well as Kanto and Chugoku.
The Hokkaido, Kinki and Kyushu regions, where space-related firms as well as launch facilities are located, identified space technology as a target sector. The Chugoku and Shikoku regions proposed shipbuilding, an existing industry.
© KYODO
