The Ministry of Economy, Trade and Industry announced that it would provide up to approximately ¥160 billion in public funding for Tower Semiconductor’s production expansion plans at its Japan operations. The announcement has drawn criticism from civic groups and others, while local governments have expressed differing views.
The Ministry of Economy, Trade and Industry announced that it would provide up to approximately ¥160 billion in public funding for a semiconductor production expansion project being carried out by Israeli semiconductor giant Tower Semiconductor at its existing plants in Uozu, Toyama Prefecture, and Myoko, Niigata Prefecture. The total project cost is expected to exceed ¥600 billion.
The company has been described as supplying semiconductors not only for civilian applications but also for military and defense purposes. While the government has explained its support from the perspective of economic security, the decision has also drawn criticism. Criticism of the government’s decision has appeared frequently on social media.
The local governments receiving the support have generally welcomed it. Niigata Prefecture Governor Hanazumi Hideyo (花角 英世) praised the project for its potential to revitalize the regional economy. Toyama Prefecture Governor Nitta Hachiro (新田 八朗) also expressed hope that it would mark a turning point for industrial development. However, protesting groups including Hirayama Takamori (平山 貴盛) submitted a letter of request outside the Ministry of Economy, Trade and Industry on 5 August, calling for the support to be withdrawn.
Critics have pointed out that while the Japanese government imposed sanctions on Russia over the situation in Ukraine, it has merely expressed concern about the humanitarian situation in Gaza and the West Bank while continuing its large-scale investment in Israel. Voices have questioned this apparent double standard.