## Japan Invests Heavily in Rapidus, a New Chip Foundry Venture
The Japanese government has approved subsidies worth up to 590 billion yen ($3.9 billion) for Rapidus, a new chip foundry venture. This significant investment underscores Tokyo's commitment to rebuilding the country's chip manufacturing base and reducing its reliance on foreign suppliers.
The subsidies include 53.5 billion yen specifically allocated for advanced packaging, a crucial technology for enhancing chip performance. Rapidus, led by industry veterans, aims to begin mass production of cutting-edge chips on the northern island of Hokkaido from 2027. This ambitious project involves partnerships with IBM and the Belgian research organization Imec.
The global chip shortage, exacerbated by the COVID-19 pandemic and trade tensions, has prompted countries worldwide to prioritize strengthening their control over chip supply chains. Japan's investment in Rapidus reflects this growing concern and its desire to regain a foothold in the global semiconductor market.
However, the road ahead for Rapidus is not without challenges. The company faces stiff competition from established players like Taiwan Semiconductor Manufacturing Co. (TSMC), which has spent decades perfecting its chip manufacturing processes. Industry experts remain skeptical about Rapidus's ability to achieve success in such a competitive landscape.
Despite these challenges, the Japanese government's substantial investment in Rapidus signals its determination to support the development of domestic chip manufacturing capabilities. The success of this venture could have significant implications for Japan's technological future and its position in the global semiconductor industry.