November 20, 2020
The Ministry of Economy, Trade and Industry (METI) opened a call for applicants for the Program for Promoting Investment in Japan to Strengthen Supply Chains that ended on July 22, and selected 146 projects as successful applicants.
Overview of the program
Given the backdrop of the effects of Covid-19, supply chains and their economic activities have been disrupted. These disruptions are primarily a result of the vulnerability of those supply chains caused by the high degree of concentration of production bases/manufacturing plants. Regarding products essential for people’s wellbeing, it is crucial to secure a domestic production base to ensure stable supply in case of emergencies. This program aims to strengthen supply chain resilience by supporting businesses in building new plants and introducing new facilities for these products and materials in Japan.
METI received 1,679 applications for programs amounting to about 1.764 trillion yen in total in response to a public call for the examination from May 22 to the closing date of July 22, 2020 for the second term. As a result of strict examination by a third-party committee of outside experts, METI selected 146 projects as successful applicants for programs amounting to about 247.8 billion yen in total.
Main projects of successful applicants
The projects of these successful applicants target, essential goods, parts and materials that are largely produced overseas, and that have a high risk of being impacted by supply chain disruptions as well as items that are to be procured in an emergency by the government and medical care system.
Products, parts and materials that are largely produced overseas (56 projects)
Semiconductor parts or materials, aircraft parts, electric vehicle battery parts or materials, rare metals, and displays, etc.
Products, parts, and materials for essential for people’s wellbeing (90 projects)
Antiseptic alcohol, masks and surgical masks (including parts), medical gowns, and medical gloves, etc.