Japan Invests Heavily in Rapidus Corp. to Revive Chip Production Industry
The Japanese government is making a significant investment in Rapidus Corp., a leading semiconductor startup, with an additional 800 billion yen ($5.2 billion) allocated in its supplementary budget proposal. This brings the total government commitment to Rapidus to 1.72 trillion yen ($11.2 billion).
This substantial investment is part of a broader effort to revitalize Japan's chip production industry, which has fallen behind global leaders like Taiwan and South Korea. Rapidus aims to mass-produce 2-nanometer semiconductors by 2027, a crucial step in regaining competitiveness.
The government's support for Rapidus is part of a 1.6-trillion-yen package aimed at bolstering the nation's semiconductor and artificial intelligence industries. This builds on the 1.8 trillion yen invested in the previous fiscal year, demonstrating the government's commitment to this sector.
However, some concerns have been raised about the supplementary budget allocation and the lack of long-term planning for Rapidus. To address these concerns, the government has unveiled a new framework to provide extensive support for the semiconductor sector until 2030. This framework will draw funding from various sources, including existing funds and revenue from government-held shares.
The government hopes that this initiative will attract 50 trillion yen in public and private investment over the next decade, generating a significant economic ripple effect. This ambitious plan underscores the government's determination to revitalize Japan's chip production industry and regain its position as a global leader in this critical field.