Japan's government is spending big on the semiconductor industry. NHK has learned that it plans to allocate about 1.9 trillion yen, or roughly 12.6 billion dollars, to bolster domestic chip production.

The government will earmark about 5 billion dollars to support mass-production of advanced chips. This is expected to help Taiwan's TSMC, which is considering building its second factory in Japan in the southwestern prefecture of Kumamoto.

Another 4.2 billion dollars will likely go to supporting firms such as Rapidus, which is aiming to produce cutting-edge semiconductors in Japan.

Around 3.8 billion dollars is expected to help ensure stable chip supplies.

The funds will likely be included in the supplementary budget for this fiscal year.

The government last week formalized a new stimulus package. It includes measures to strengthen supply chains for advanced semiconductors that are seen as important for economic security. The Cabinet plans to officially decide on the supplementary budget bill on Friday.