Japan to invest $1.3 billion in chip start-up Rapidus
The move comes after the Japanese government has already agreed to provide 920 billion yen in subsidies to semiconductor startup Rapidus as the chipmaker prepares to begin mass production in 2027.
The Japanese government is reportedly planning to invest 200 billion yen (around USD 1.3 billion) in semiconductor startup Rapidus to help it start commercial production in 2027.
The government hopes its stake in the Japanese company in fiscal 2025 will accelerate private-sector investment and financing amid a national push to produce cutting-edge semiconductor chips, according to a report by Nikkei.
The move comes after 920 billion yen in subsidies the government already agreed to provide Rapidus as the chipmaker prepares to begin mass production within three years.
The new draft proposal was presented to lawmakers of the ruling party by the Ministry of Economy, Trade and Industry, the Nikkei report said.
The latest allocation is part of a broader 1.6-trillion-yen package aimed at boosting Japan’s chip and AI sectors.
Rapidus Corporation was founded in 2022 by the government and eight domestic firms to develop and manufacture advanced chips. Toyota and Sony are among the companies that have invested billions in Rapidus.
Rapidus received around 330 billion yen from the Japanese government between 2022 and 2023 to mass produce 2-nanometer chips from 2027.
Its competition includes well-established global leaders like Taiwan’s Semiconductor Manufacturing Company and South Korea’s Samsung Electronics.
Japan has been struggling to catch up with rivals like Taiwan and South Korea that have leaped ahead in designing and making advanced semiconductors.
“Japan occupied more than half of the global semiconductor market in the 1980s, but other countries have been leading in this industry ever since,” the Japanese government said in a report in March. “While plants in other parts of the world are currently mass producing 3-nm chips, the most advanced generation produced in Japan now is the 40-nm chip.”
Some critics say the government’s backing of Rapidus lacks a long-term strategic vision. In response, the government has unveiled plans to establish a new framework for providing extensive support for the semiconductor sector through the 2020s.
