Press Conference by Minister Muto (Excerpt)

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

10:58 to 11:19
Friday, October 4, 2024
Press Conference Room, METI Main Building

Opening Remarks

Visits to Fukushima and Osaka Prefectures

To begin, I would like to mention one point.

If conditions permit, I will visit Fukushima Prefecture tomorrow, October 5, and then visit Osaka Prefecture on the following day, October 6.

When I visit Fukushima tomorrow, I will for the first time in many months meet with Governor Uchibori, Mayor Yoshida of Okuma Town, and Mayor Izawa of Futaba Town. I will finally be able to visit Fukushima after such a long time, and while there I will have my first ever meeting with Chairman Nishiyama of the prefectural assembly.

Through the exchange of opinions, I would like to once again convey our commitment to the reconstruction of Fukushima, which is the issue of the highest priority for the Ministry of Economy, Trade, and Industry (METI).

I am also scheduled to visit the Tokyo Electric Power Company Holdings, Inc. Fukushima Daiichi Nuclear Power Station (FDNPS). Although I visited the NPS three times when I was the chairperson of the local Nuclear Emergency Response Headquarters, this time I am thinking of directly observing the progress of the decommissioning and the discharge of ALPS Treated Water into the ocean.

During the visit to Osaka on Sunday, I will, as the Minister in Charge of Expo 2025, visit and observe the Yumeshima Site, which will be the site of Expo 2025 Osaka, Kansai, Japan, and, along with other matters, confirm the progress of the construction of the site. I would also like to exchange opinions with stakeholders in the business community in Kansai.

I will end my remarks here.

Question-and-Answer Session

Power system innovation

Q: I would like to ask about the power system innovation.

Currently, discussions are being held in the experts' meeting within METI on the verification of power system innovation. Please remind us about the positive aspects of implementing the power system innovation, points that are recognized as challenges, and the direction for further innovation.

Also, in relation to that, what kind of business environment development do you think will be necessary in order to encourage investment in decarbonized power sources?

A: I would like to give three achievements that have occurred due to the power system innovation to date. The first achievement is the establishment of an expansive power supply system for power interchange and restoration on a nationwide scale during disasters and in other cases of emergency. The second point is the actual record of liberalized rates for households being maintained at a lower level than the regulated rates. The third point is, I understand, that there have been other achievements, such as the progress of new entries into the retail power business, and the widening of options for consumers,including the renewable energy menu.

On the other hand, regarding investment in power sources, with the rapid progress in renewable energy and the flow of decarbonization, operation at many thermal power plants is being suspended or discontinued, while new construction is also growing stagnant. Also due to the delay of the restart of the operation of nuclear power plants, securing future supply capacity to ensure a stable supply has become an issue.

In addition, as I mentioned yesterday, decarbonized power sources, such as renewable energy and nuclear energy, will be important in order to achieve a stable supply of energy, economic growth, and decarbonization simultaneously, while power demand is expected to increase with the progress of Digital Transformation (DX) and Green Transformation (GX). In particular, large-scale power sources entail large volatility risks in terms of income and expenses, and I understand that it is necessary to develop a business environment to cope with such risks.

A comprehensive verification of the power system innovation, including such issues, is currently underway, and the verification is scheduled to be summarized by next March.

I have nothing else to add.

Support for next-generation semiconductors

Q: Your predecessor Minister Saito presented his view that there are various opinions regarding the challenges that Rapidus Corporation currently faces. He pointed out mainly four points, namely the establishment of mass-production technology, customer acquisition, fund procurement necessary for investment in mass production, and securing and developing human resources. Please let us know what decisions have been made towards resolving these issues.

A: The Rapidus Project is an ambitious project to realize mass production, which has not yet been achieved by major companies overseas, and it is true there are still many challenges remaining. However, if we were to give up on this kind of advanced technology, it would be difficult to reconstruct the semiconductor industry in Japan. We are currently working to make the project successful, overcoming the challenges.

We are tackling the challenge of establishing the mass-production technology through cooperation with major overseas companies and research institutes, including IBM in the U.S., and by hiring excellent human resources. Regarding customer acquisition, we understand that Rapidus is opening its marketing base in the West Coast of the U.S. METI is also supporting the research and development on the promotion of utilizing advanced semiconductors in the automobile industry.

Regarding fund procurement, we are advancing discussions so that the bill for providing necessary support, including the expansion of the use of investment and financing, can be submitted to the Diet.

Another item which I already mentioned yesterday is that regarding human resources development, an industry-academia-government consortium has been established in Hokkaido, and initiatives such as collaboration with universities are being implemented.

While securely resolving the issues to date, we are willing to exert our utmost effort towards the start of mass production in 2027. Thank you for your understanding.