Japan plans to start trillion yen to purchase equipment to support manufacturing

According to media reports, the Japanese government has basically decided on a policy of flexible use of public funds in order to strengthen the competitiveness of electronic machinery manufacturers. A new law will be enacted to co-finance machinery and equipment leasing companies through the creation of new public funds to acquire plant and equipment. The purpose is to ease the financial burden formed by the previous investment of enterprises. By increasing the funds on hand of manufacturers such as semiconductors and liquid crystal panels, which are rapidly innovating in technology, they will stabilize the foundation for future growth and enable them to flexibly invest in new equipment according to the situation. The Japanese government will spend more than 5 years to promote the acquisition of assets through public and private joint ventures, and it is estimated that the cumulative purchase amount will reach more than 1 trillion yen. In addition to the electronic machinery industry, industrial machinery and carbon fiber companies are also interested in selling assets. Although the Japanese government hopes to maintain domestic employment rates and prevent the hollowing out of industries, such use of public funds may also lead to criticism of operating moral hazard. The new system on the use of public funds is the core content of the 'Industrial Competitiveness Enhancement Act' (tentative name) to be formulated by the Japan Economic Regeneration Headquarters under the new regime. The new law will come into effect after the regular parliament next year, but if the budget measures go well, up to 100 billion yen is expected to be included in the annual revised budget to be introduced in January next year.