Cabinet Decision on the Bill for the Act for Partially Amending the Act on Facilitation of Information Processing and the Act on Special Accounts

1. Purpose of the bill

Demand for computation has been dramatically growing in accordance with the rapidly expanding utilization of generative AI. To address this, it is necessary for Japan to build an ecosystem in which hardware, e.g., semiconductors and data centers, and software, e.g., generative AI, collaborate and make progress based on such collaboration, and also to advance the fostering of human resources with expertise in digital technology who will further drive the utilization of such technology, e.g., generative AI. To this end, the Ministry of Economy, Trade and Industry (METI) decided to take certain measures.

Moreover, it is significant for Japan not only to secure the financial resources necessary for initiatives involving semiconductors and AI and to stimulate large-scale public and private investment, thereby capturing growing demand in the semiconductor and AI industries, but also to ensure the outcomes lead to the strengthening of the international competitiveness of the respective industries. METI has also decided to take certain measures toward this end.

2. Outline of the bill

(1) Partial Amendment of the Act on Facilitation of Information Processing

1. The revised Act is to focus on businesses’ efforts necessary for the stable production of designated semiconductors for high-speed information processing* and to provide for measures for supporting businesses in conducting these efforts, including the capital contributions for funds necessary for conducting such efforts, capital contributions in kind targeting facilities and equipment, and debt guarantees related to the borrowing of necessary funds. In addition, it is to stipulate that businesses that are entitled to receive the support measures should be selected by public calls and that the services related to these support measures should be provided by the Information-technology Promotion Agency, Japan (IPA).

   *Note: Semiconductors that have been designated by the Minister of Economy, Trade and Industry as those capable of processing extremely large amounts of information at extremely high speeds.

2. The revised Act is to add a new service to IPA’s existing services, namely debt guarantees on the funds necessary for a business engaging in information processing services to introduce equipment capable of processing large amounts of information at high speeds.

3. The revised Act is to add another new service to IPA’s existing services, namely the development of human resources who have the expert knowledge and skills necessary to perform involving information processing and improving the quality of these human resources.

4. The revised Act is to allow the government to issue government bonds under the Special Account for Energy Measures from FY2025 to FY2030 to cover the financial resources needed for certain measures for some initiatives, e.g., ensuring the stable production of advanced semiconductors. In addition, it is to allow the government to transfer the amount from the investment account of the Special Account for the Fiscal Investment and Loan Program to an account to be newly established under the Special Account For Energy Measures so as to secure the financial resources needed for the redemption of the government bonds.

(2) Partial Amendment of the Act on Special Accounts

1. The revised Act is to add measures for advanced semiconductors and artificial intelligence-related technologies to the Special Account for Energy Measures, newly establish an account for advanced semiconductors and artificial intelligence-related technologies, and, based on this, stipulate revenue and expenditure items, e.g., those for capital contributions to IPA.

2. The revised Act is to transfer the amount from the account for supply and demand of energy and the general account (money returned to the national treasury from the funds under the jurisdiction of METI) to the account for advanced semiconductors and artificial intelligence-related technologies so as to secure the financial resources needed for the measures for advanced semiconductors and artificial intelligence-related technologies.

3. Related Materials (in Japanese)

• Summary of the bill for the Acts(PDF:437KB)
• Outline of the bill for the Acts(PDF:137KB)
• Bill for the Acts and the reason therefor(PDF:234KB)
• Comparison of the prior and revised provisions(PDF:403KB)
• Referential provisions(PDF:290KB)

Division in Charge

• Policy Planning and Coordination Division, Commerce and Information Policy Bureau
• IT Industry Division, Commerce and Information Policy Bureau
• IT Innovation Division, Commerce and Information Policy Bureau