"Budget Support for Autonomous Driving Semiconductors" Japan Aims for Industrial Revival

The Japanese government, while expanding subsidies for domestic companies to revive the semiconductor industry, has also decided to provide budget support for the development of 'autonomous driving' semiconductor technology.

ASRA logo

On the 29th, NHK reported that Japan's Ministry of Economy, Trade and Industry will provide about 1 billion yen (9 billion won) to the Automotive Advanced SoC Technology Research Association (ASRA), established in December last year by Toyota Motor, Honda, Renesas Electronics, and others for the development of advanced semiconductor technology for autonomous driving.

Minister of Economy, Trade and Industry Saito Gen said, "We expect the advancement of advanced semiconductor utilization to lead to the realization of intelligent and electrified vehicles."

ASRA is an association consisting of 14 companies from Japan's automotive and semiconductor industries. It aims to develop related technologies by 2028 to improve processing speed and reduce power consumption of semiconductors necessary for autonomous driving technology, and to apply these to mass-produced vehicles starting in 2030.

Earlier, the Japanese government established the 'Semiconductor and Digital Industry Strategy' in 2021 to revive its semiconductor industry and has secured a support budget of about 4 trillion yen (approximately 350 trillion won) accordingly, expanding subsidies for semiconductor companies.

Notably, the Japanese government plans to provide up to 476 billion yen (about 4.2341 trillion won) in subsidies to TSMC's first plant in Kumamoto Prefecture, Kyushu, Japan, which opened last month.