Japan approves extra $4 billion for chipmaker Rapidus
Established in 2022, Rapidus has secured funding from both the public and private sectors. It is aiming to mass-produce cutting-edge chips using 2-nanometer technology by 2027.
Japan has approved ¥631.5 billion (USD 4 billion) in additional subsidies to accelerate Rapidus’ entry into the AI chipmaking. The capital is intended to bankroll the Japanese state-backed startup’s work for IT firm Fujitsu, according to a report by Bloomberg.
The new money raises the fees and investments that the government is injecting into the fledgling company to USD 16.3 billion by the end of the current fiscal year to March 2027, according to a statement from Japan’s Ministry of Economy, Trade and Industry.
Established in 2022, Rapidus has secured funding from both the public and private sectors. It is aiming to mass-produce cutting-edge chips using 2-nanometer technology by 2027.
The support is part of the government’s efforts to boost domestic production of advanced semiconductors and strengthen chip supply chains, according to Reuters.
However, as the Bloomberg report points out, Rapidus remains far behind TSMC, which began 2 nm volume production last year and is the preferred chipmaker for tech giants like Nvidia and Apple. Rapidus is also being adversely affected by the ongoing conflict in the Middle East that has led to rising energy and material input costs.
