Press Conference by Minister Muto (Excerpt)

*Note: This is a provisional translation for reference purposes only.

12:36 to 12:58
Wednesday, October 2, 2024
Press Conference Room, METI Main Building

Opening Remarks

Upon assuming office as minister

I am Muto Yoji, and I was appointed as Minister of Economy, Trade and Industry (METI) yesterday. I hope I can count on your support.
As I said in the on-the-move interview, I was appointed by the Prime Minister to serve as Minister of Economy, Trade and Industry, Minister in charge of the Response to the Economic Impact caused by the Nuclear Accident, Minister of State for the Nuclear Damage Compensation and Decommissioning Facilitation Corporation, Minister for Green Transformation, and Minister in charge of Industrial Competitiveness under the Ishiba administration.

The Prime Minister has instructed me to undertake the following: (ⅰ) to promote the reconstruction of Fukushima, including the decommissioning of Tokyo Electric Power’s Fukushima Daiichi Nuclear Power Station, while fulfilling accountability to the people; (ⅱ) to realize a growth-oriented economy led by wage hikes and investments with overcoming deflation as the top priority based on the principle that the economy comes before fiscal management; in particular to realize wage growth outpacing price increase, especially among small and medium-sized enterprises; (ⅲ) to promote energy and Green Transformation (GX) policies including the response to increased electricity demand and decarbonization; and (ⅳ) to steadily make preparations for the Expo 2025 Osaka, Kansai, Japan.

Based on those instructions from the Prime Minister, I will do my utmost to fulfill my job duties in cooperation with our staff while taking advantage and making the most of my experience of having served as State Minister of Economy, Trade and Industry four years ago and also in a post related to the administration of economic and industrial affairs at the party’s Policy Research Council.
I will end my remarks here.

Question-and-Answer Session

Support for next-generation semiconductors

Q: What is your view of METI’s existing semiconductor policy initiatives, including the Rapidus project, and its conduct of policy? In particular, it has been decided to provide support worth 3.9 trillion yen over a period of around four years. What is your view of the scale of future support? Also, regarding the so-called Rapidus support bill, which would enable governmental investment, what are your thoughts on the timing of its submission?

A: I understand that semiconductors are essential goods for all industries in Japan, including the automobile industry. I also understand that semiconductors are important strategic goods from various viewpoints, such as digitalization, decarbonization, and economic security. The Rapidus project, in particular, is a very ambitious initiative, as it aims for mass production of a 2-nanometer chip, which would be the most advanced semiconductor in the world—even leading foreign companies have not yet arrived at mass production of this. Giving up on this advanced technology would make it difficult for the Japanese semiconductor industry to achieve a recovery, so the government has decided to provide support worth up to 920 billion yen to promote the project. That is my understanding.
In addition, I believe that in order to submit at an early time a bill to provide necessary support, including the expanded use of investments and loans that you mentioned just now, in preparation for the start of mass production in 2027, we must proceed with the consideration on the bill together with relevant ministries and agencies. We are still making arrangements regarding the timing. We will work toward the earliest possible submission.

GX and nuclear policy

Q: Regarding Green Transformation, or GX, and nuclear policy, I would like to clarify one or two points. Am I correct in understanding that you will maintain the policy that the previous Kishida administration has promoted? That is the first point. Also, regarding your earlier statement that economic growth depends on securing decarbonized power sources amid growing electricity demand, please tell me once again what you recognize as the challenge for increasing decarbonized power sources in the future and how you will respond.

A: On GX, the work to draw up the GX2040 Vision toward the end of the year is now ongoing.
As you mentioned just now, even if we would like to build data centers across the nation, there is the problem of how to secure the power sources. Moreover, we are about to arrive at quite a new world where companies promote research and development individually in various fields while using AI.
In this situation, regarding how energy can be secured, there are constraints on factory locations—that is, it is difficult to locate a factory where decarbonized power sources are not available.
As a result, how each region will secure such power sources becomes a very important viewpoint, so GX is an urgent matter, along with the securing of energy, securing of power sources, and the current geopolitical issues, that we need to sort out.
We must cooperate with various ministries to address GX and those other matters.