Japanese government to invest 100 bil. yen in chipmaker Rapidus
The Japanese government said Friday it plans to provide over 1 trillion yen ($6.38 billion) worth of investment and subsidies between fiscal 2026 and 2027 in chip venture Rapidus Corp., ramping up efforts to improve its economic security by strengthening its domestic semiconductor supply chain, Kyodo reports.
The company said in a business plan submitted to the Ministry of Economy, Trade and Industry that it aims to begin manufacturing next-generation semiconductors in the second half of fiscal 2027, expecting to invest a total of 7 trillion yen. It also hopes to go public around fiscal 2031.
The company previously expected that it would need roughly 5 trillion yen of investment to get ready for mass production.
For the current fiscal year ending March, the trade ministry said that it will invest 100 billion yen in the company and approximately 150 billion yen in fiscal 2026.
It will offer subsidies totaling around 630 billion yen in fiscal 2026 and about 300 billion yen in fiscal 2027. These commitments will come on top of 1.7 trillion yen of subsidies the Japanese government has pledged and some 100 billion of investment from private companies.
Rapidus aims to mass-produce 2-nanometer chips, which are not yet available for commercial use globally, in the second half of fiscal 2027, and manufacture 1.4-nanometer and 1-nanometer chips in the following few years.
"It's a national project that we must make a success out of," trade minister Ryosei Akazawa said at a press conference after a business proposal submitted by the company was approved by the government.
A revised law on information technology promotion was enforced in August, implementing a framework for state engagement in the development of advanced chips.
The trade ministry solicited requests for government support from semiconductor-related businesses between September and October, receiving just one application from Rapidus.
The move comes as competition to develop advanced semiconductors intensifies across the globe, with the growth of artificial intelligence increasing demand for fast and energy-efficient chips.
The company was established in 2022 with investment from eight major Japanese companies, including Toyota Motor Corp. and Sony Group Corp.
Earlier, Qazinform News Agency reported that AI chipmaker Nvidia became the first $5 trillion company.
