Press Conference by Minister Akazawa (Excerpt)

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

10:10‒10:17 a.m.
Tuesday, November 25, 2025
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Special taxation measures

Q: Last week, the ruling parties started full-scale discussions on special taxation measures. Because of the need to secure a financial source to offset the decrease in tax revenue to be caused by the abolition of the provisional tax rate on gasoline, the review of corporate tax-related special taxation measures is on the agenda. The Ministry of Economy, Trade and Industry (METI) has been pointing out the importance of special taxation measures as a means to promote wage increases and revitalize domestic investment. Could you share your ideas about special taxation measures, including the research and development (R&D) tax credit system?

A: The R&D tax credit system, which you have mentioned, encourages companies to continue and increase their R&D investments, and such investments will provide a foundation for Japan’s economic growth. In its growth strategy, the Takaichi Cabinet attributes special importance to investments that enhance resilience against potential crises and investments that promote growth. Accordingly, the government will foster bold capital investment and promote R&D mainly in the AI, semiconductor and quantum fields, which are strategic areas for the said investments, thereby attracting more public and private investment. I think the R&D tax credit system is essential for the realization of a robust economy, which Prime Minister Takaichi aims for. Based on this recognition, we will review the current special taxation measures, including the R&D tax credit system, on a continual basis in terms of their necessity and policy effect.

Additional investment in Rapidus Corporation

Q: Let me ask you about the additional investment in Rapidus. According to the announcement made last Friday, METI will invest 100 billion yen in the semiconductor maker within the current fiscal year and also plans to give additional financial support totaling about 1 trillion yen to the company. Whether the company can achieve a result that is commensurate with the amount of financial support provided will attract much attention from the public. What is your view on this point?

A: The emergence of generative AI is contributing to the dramatic popularization of AI systems, which will in turn boost the demand for semiconductors to be used in their GPUs. Indeed, semiconductor manufacturing is at a turning point in many respects. The United States, the Republic of Korea and Taiwan have been leading the world as the big three in the manufacturing of advanced semiconductors, and they are now focusing on 2-nanometer chips. Under these circumstances, demand for semiconductors, including those used in generative AI systems, will skyrocket going forward. At this epoch-making moment, it is very important for Japan to participate and compete in the market of advanced semiconductors. I believe that investing in semiconductors constitutes a core part of the investments that enhance resilience against potential crises, which are indispensable for building a robust economy, as emphasized by the Takaichi administration. The government has long been supporting Rapidus and has already invested about 1 trillion yen in the company in line with its earlier decision. In parallel with green transformation (GX), which the government regards as a truly important field, AI and semiconductors also represent an area that the government addresses seriously as a matter of national policy by determining the financial framework. Further, I myself made a visit to the semiconductor plant of Rapidus in Chitose to talk with on-site engineers, who convinced me that they will make a great achievement. The purpose of my visit was to see the lithography equipment that costs as much as 50 billion yen per unit. But in the end, it is people, not machines, who conduct the business, and the engineers are absorbed in their work in line with their clear vision. I am sure that they will be able to achieve success as I expect them to do and would like to provide them with steady support. The government has implemented measures for semiconductors as a matter of national policy before, with various pros and cons involved. Making maximum use of the lessons learned from these experiences, I would like to make an all-out effort to achieve the greatest results for the entire government and as a matter of national policy.