Japan has announced a substantial $65 billion initiative to bolster its domestic semiconductor and artificial intelligence sectors, drawing inspiration from the US Chips and Science Act. Prime Minister Shigeru Ishiba has revealed this plan aims to generate over 50 trillion yen in public and private investments over the next decade without resorting to tax hikes or deficit-covering bonds. The initiative targets companies like Rapidus, which plans to begin mass production of advanced 2nm chips by 2027, in collaboration with IBM. This move is part of Japan's broader strategy to remain competitive in the global chip race, especially against China, which is heavily investing in its semiconductor capabilities. The plan is expected to significantly impact Japan's economy, generating an estimated 160 trillion yen in economic benefits. However, challenges remain, including potential workforce shortages and the complex nature of chip development.