Press Conference by Minister Muto (Excerpt)

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

1:57 to 2:10 p.m.
Friday, February 7, 2025
Press Conference Room, METI Main Building

Opening Remarks

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

Today, a Cabinet decision was made on the Bill for the Act for Partially Amending the Act on Facilitation of Information Processing and the Act on Special Accounts. It is important for Japan not only to promote the utilization of generative AI, which is indispensable for achieving economic growth and solving labor shortages and other social challenges, but also to stimulate large-scale public and private investment in the fields of semiconductors and AI, thereby strengthening the international competitiveness of Japanese industries.

In light of this situation, in addition to measures such as financial support for the production of next-generation semiconductors and the introduction of high-performance servers, and the development of digital human resources, we will take measures to secure the necessary financial resources for the Framework for Strengthening the AI and Semiconductor Industrial Infrastructure, which will provide more than 10 trillion yen in public support over seven years.For details of the bill, please make inquiries with the administrative staff later.

Question-and-Answer Session

Japan-U.S. summit meeting

Q: The Japan-U.S. summit meeting is about to begin. I understand that Japan is facing various issues, including LNG in the field of economy and industry as well as investment in the U.S. Could you comment on these issues, in particular, on your expectations or requests to the prime minister?

A: The Japan-U.S. summit meeting this time will be an important opportunity to build a very robust relationship of trust and cooperation between Japan and the new U.S. administration. I expect that at the meeting, the two sides will hold fruitful discussions to enrich and develop the economic ties between Japan and the U.S. in a way that contributes to Japan’s interests. I conveyed this thought to Prime Minister Ishiba.

Q: I would like to ask you about LNG as a topic during the Japan-U.S. summit meeting. Prior to the summit meeting, the chairman of the Japan Gas Association stated the other day to the effect that he hopes that Japan can avoid being forced to pay higher prices for LNG. On the other hand, some media reported that Prime Minister Ishiba would express a positive intention to expand imports at the Japan-U.S. summit meeting. Given this situation, could you tell us your views on the benefits for Japan of increasing imports of LNG produced in the U.S.?

A: Although former President Biden had announced a temporary suspension on approving LNG exports, there have been some actions to lift the suspension, and, as I already mentioned before, natural gas production is expected to increase. I recognize that this increase will contribute to stabilizing the global market as a whole and become an important element for Japan to improve, or help improve, the predictability of its LNG procurement.

I would like to refrain from making comments on how this issue will be discussed at the Japan-U.S. summit meeting as any statements at this point would be premature, and I do not think that it is appropriate to talk about something that cannot be foreseen at the present time.

Business integration of Honda and Nissan

Q: It was reported that Honda and Nissan ended their discussions on their proposed business integration. Could you offer your views on, for example, whether or not METI expects the two companies to continue discussions? In addition, it was also reported that Honda had requested Nissan to take dramatic restructuring measures. What are your thoughts on the need for Nissan to take such dramatic restructuring measures in the first place? Finally, I have one more question. Although I have no idea about what will happen in the future, we cannot rule out the possibility that Nissan will be acquired by a foreign company. In this situation, please tell me about METI’s possible response if any foreign company acquires Nissan and also about your views on the potential impact on the Japanese automobile industry in the event of such an acquisition, which is something I do not want to think about.

A: We have been paying close attention to the development of the discussions between the two companies, but we have not yet received any official decision. We are also aware of various facts, therefore, as the government, we would like to refrain from making any comments at this time.

This being said, however, speaking about the automobile-related industry, which METI has been engaged with since before I took office, the Mobility Committee of Keidanren and other organizations have shown a stance to promote collaboration in many ways among automobile companies amidst their fierce competition. In this sense, my personal take is that, since the automobile industry is a very important foundation for strengthening Japan's competitiveness, I hope that the two companies will take a positive approach, regardless of how it may turn out.

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

Q: I would like to ask you about two points on the amendment to the Act on Facilitation of Information Processing, which you mentioned at the beginning.

First, although this question may have been asked before, regarding the bill for the amendment to the Act this time, I assume Rapidus would be the target of the support measures for the time being. Could you offer your thoughts on how important this bill is for Rapidus as the company moves forward with the mass production of semiconductors?

Second, if the bill is passed, I believe that the government plans to invest around four trillion yen in the company as financial support, which is a very large scale of funding. So, could you comment on approaches as to how to explain this to the Japanese people and to seek their understanding?

A: At the meeting of the Budget Committee held today, we received various opinions on this issue. This amendment to the Act aims to allow the government, as a first step toward the mass production of next-generation semiconductors, to fund 100 billion yen as a prior investment in a way that will allow private sector participation. This is one of the objectives of the amendment.

As we said in our answers to various questions at the committee meeting today, the true value of semiconductors is as strategic goods. Semiconductors will become so essential for our everyday lives that nothing will work without them. We should deeply reflect on semiconductors and examine the past to find the points that we need to improve. This time, the whole of Japan should take on this field, considering these points together. From this viewpoint, we have been investing in research and development on a massive scale, including this funding.

Accordingly, we have to achieve this at any cost, as Japan now stands at a crossroads: either we will have to buy semiconductors from abroad to survive, or semiconductors produced in Japan will become our new contribution to the world. This is the explanation I stressed at the meeting today.

We will submit the bill to the Diet, and the Diet will hold appropriate and thorough deliberations on it. Bearing in mind that the people of Japan are behind the bill, we intend to work hard to secure people's future lives and for the betterment of Japan. I hope that people will understand this point.

Offshore wind power generation

Q: I would like to ask you about offshore wind power generation. Mitsubishi Corporation and a subsidiary of Chubu Electric Power, which are the winners of the first round of the public call, announced one after another that they incurred extraordinary losses and that they are re-evaluating the feasibility of their projects. There are some concerns that the delay in launching construction and the difficulty in establishing the offshore wind power industry will hinder both an increase in decarbonized electricity and a reduction in greenhouse gases. Given these circumstances, could you comment on this situation and on whether or not the government considers it necessary to, I could say, retroactively provide these winners of the first round of the public call with additional support measures to ensure the completion of the projects?

A: We should work hard to achieve the 50% target for renewable energy set in the Strategic Energy Plan. Among the various new energy sources, such as solar power and perovskite, I acknowledge that METI has been focusing its efforts on the field of offshore wind power generation in particular.

However, as you mentioned now, it is also true that related projects have been suspended worldwide because of the impact caused by inflation and other factors. METI has also reviewed the public call system to ensure the realization of domestic projects, including an increase in the amount of the deposit to prevent withdrawals and delays and the introduction of a system to adjust prices based on price fluctuations after bidding.

I also recognize that Mitsubishi Corporation and Chubu Electric Power announced policies to the effect that they will make all efforts possible for the projects in the three domestic sea areas. In light of this, METI will strive to request the companies to ensure the realization of the projects.