Announcement of Progress in Program for Promoting Investment in Japan to Strengthen Supply Chains: Current Situations of Application Filing and Schedule for Selecting Applications
August 5, 2020
*This press release was revised on September 8, 2020 in order to correct erratum in the program title.
The Ministry of Economy, Trade and Industry (METI) opened a call for applicants for the Program for Promoting Investment in Japan to Strengthen Supply Chains that ended on July 22, 2020, which was established under the FY2020 Primary Supplementary Budget, and received 1,670 applications requesting a total of about 1.7640 trillion yen. METI expects to announce successful applicants in October 2020 after strict examination by a third-party committee of outside experts.
1. Overview of the program
Given the backdrop of the effects of Covid-19, supply chains and their economic activities have been disrupted. These disruptions are primarily a result of the vulnerability of those supply chains caused by the high degree of concentration of production bases/manufacturing plants. Regarding products essential for people’s wellbeing, it is crucial to secure a domestic production base to ensure stable supply in case of emergencies. This program aims to strengthen supply chain resilience by supporting businesses in building new plants and introducing new facilities for these products and materials in Japan.
2. Current situations of application filing
From May 22 to the closing date of July 22, 2020, METI received 1,670 applications requesting a total of about 1.7640 trillion yen, excluding the applications filed for the first examination.
3. Future actions
A third-party committee of outside experts will conduct strict examinations of the applications and, based on the result, METI will announce successful applications. When opening the call, successful applicants were scheduled to be announced after August 2020. However, as the number of applications it received was extraordinary, more time is needed for examinations, and therefore METI expects to announce successful applicants in October 2020.
METI permits applicant businesses to file a request for approval to start their projects in advance. As of this release, applicants are newly permitted to file a request for advance start of business projects even after submitting their original application for the program so that projects may progress unhindered.
Division in Charge
Regional Industrial Infrastructure Division, Regional Economic and Industrial Policy Group