Japan Setting Up $1 Bil. Fund For Post - 5g R&d

Japan setting up $1 bil. fund for post-5G R&D

Japanese government officials are drawing up a budget for a fund that will support technologies in a post-5G world. Sources say the officials are considering allocating about one billion dollars, about half of what the Industry Ministry had asked for.

They say the officials are making final arrangements to put the money into the general budget for next year.

The sources say the fund will be established in fiscal 2020 within the New Energy and Industrial Technology Development Organization.

The money will be used on technologies that will form the backbone of a society where 5G wireless communications play a key role in industry and many other aspects of life.

NEDO's project will involve not just IT and semiconductor companies, but also manufacturers of cars and industrial machinery.

Government officials apparently want the development of cutting-edge computer chips and communications systems to be accelerated. They plan to make that goal a national priority.

But Japanese companies will need to work together and combine their technical expertise, if they are to catch up with overseas rivals that have access to large amounts of funding.

Chinese telecom giant Huawei leads the world in the number of 5G patents, with annual spending of more than 13 billion dollars on R&D.