Japan's Ambitious Investment in Rapidus Corp.
The Japanese government is making a significant investment in Rapidus Corp., a leading domestic semiconductor startup, with an additional 800 billion yen ($5.2 billion) allocated in its supplementary budget proposal. This substantial support comes on top of the 920 billion yen already committed to Rapidus, reflecting the government's ambition to revitalize Japan's semiconductor industry.
Rapidus aims to mass-produce 2-nanometer semiconductors by 2027, a highly ambitious goal that requires an estimated total investment of 4 trillion yen. The government's latest allocation is part of a broader 1.6-trillion-yen package dedicated to bolstering the nation's semiconductor and artificial intelligence industries. This commitment underscores the growing importance of semiconductors for economic security, as evidenced by the total 3.9 trillion yen invested in the chip industry over the past three years.
However, concerns have been raised regarding the long-term planning and strategic principles behind the government's support for Rapidus. To address these concerns, the government has unveiled plans for a new framework providing extensive support for the semiconductor sector until fiscal 2030. This initiative aims to attract 50 trillion yen in public and private investment over the next decade, generating a substantial economic ripple effect.
The government's commitment to Rapidus and the broader semiconductor industry represents a significant step towards regaining Japan's position as a global leader in chip production. However, the success of this ambitious endeavor hinges on careful planning, strategic execution, and continued collaboration between the government and private sector.