Press Conference by Minister Muto (Excerpt)

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

10:57 to 11:02 a.m.
Tuesday, November 19, 2024
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Supporting AI and semiconductors

Q: I would like to ask you about the framework for supporting the AI and semiconductor sectors. Regarding the framework for providing support of 10 trillion yen to the AI and semiconductor sectors that you mentioned at a recent press conference, it has been reported that the financial resources would come from the issuance of new government bonds, the sales of The Shoko Chukin Bank’s shares, and returned money from funds under the jurisdiction of METI. Could you explain anew your view on the purpose of this support?

In addition, it has also been reported that out of the 10 trillion yen, the government will allocate six trillion yen to subsidies and outsourcing and four trillion yen to investment and debt guarantees as financial support. Could you comment on the aim of this, too?

A: Concerning the purpose, we consider the investment in the AI and semiconductor sectors extremely important not only from the perspective of economic security but also for the development of all other industries and in delivering solutions to social issues, such as Green Transformation (GX), as we have been reiterating.

Moreover, this support is expected to have wide-ranging ripple effects on businesses, including regional small and medium-size enterprises (SMEs). I am aware of the press coverage; however, regarding the purpose—namely the details of the support framework as of today—we are now incorporating the draft details of the framework, including financial resources, into the original draft of the economic measures, and undertaking final coordination. Therefore, I would like to clearly explain the details only after we finalize them.

Impact of U.S. sanctions against Russia

Q: It has been reported that the Biden administration is considering additional sanctions against Russia. I would like to ask you anew about two points: what is the importance of Russian LNG including Sakhalin-II for Japan, and amid increasing concern over the impact to Japan’s LNG procurement, what is METI’s view of the impact that any additional US-led sanctions may have on Japan's energy procurement.

A: Although I am aware of the press coverage, I think that I should refrain from making any comments on the coverage of another country’s policies as such comments would be premature.

Generally speaking, it is extremely important for Japan’s energy security to ensure a supply of LNG from overseas including the Sakhalin-II project that you mentioned. Accordingly, I believe that it is our duty to make every possible effort to avoid any disruption and to secure a stable supply to Japan.