Geopolitical events
On May 13, 2026, the Japanese Ministry of Economy, Trade and Industry (METI) officially launched the "Silicon Shield Initiative," a $28 billion public--private investment framework aimed at reshoring advanced semiconductor manufacturing.
Key features of the policy include:
- Fiscal Incentives: 10--year corporate tax holidays for foreign foundries.
- Capital Grants: Direct funding for the construction of high--end logic chip plants in designated "Special Economic Zones."
This strategic pivot is intended to bolster national economic security and mitigate risks associated with regional supply chain disruptions in East Asia.