Tokyo, 03 April, /AJMEDIA/
Japan’s industry minister said Tuesday it will provide up to 590 billion yen to Rapidus Corp in additional subsidies as the country ramps up efforts to strengthen its domestic semiconductor supply chain.
Combined with the 330 billion yen already earmarked by the ministry, the amount of government finance going into the Japanese chip venture will total almost 1 trillion yen.
The move underscores the country’s commitment to reviving the semiconductor industry as chips increasingly become important in ensuring economic security amid growing rivalry between the United States and China.
“Next-generation semiconductors will be a key factor for the future growth of the country’s industry,” Economy, Trade and Industry Minister Ken Saito told a news conference. “The ministry will do its utmost to ensure (Rapidus’s) success.”
Set up in 2022 by Toyota Motor Corp, Sony Group Corp and six other companies, Rapidus aims to start mass production in 2027 of 2-nanometer chips, a next-generation technology expected to be used for 5G communications, quantum computing, and self-driving vehicles. The company is building a plant in Hokkaido.
“We will join forces (with various manufacturers) to make chips that can contribute to the world from Japan,” Rapidus President Atsuyoshi Koike said at a press conference. “The funding is extremely important for setting up a pilot line,” expected to be ready in April 2025.
Of the 590 billion yen, 536.5 billion yen will be used to purchase chip-manufacturing equipment, such as extreme ultraviolet lithography machines.
The company has said it will need roughly 5 trillion yen for the project, including research and preparation for mass production.
Koike said his company is still working on the financing plan.
Demand for chips is expected to grow worldwide as digitalization accelerates. The recent artificial intelligence boom is also prompting governments and private firms to invest more in chips as more high-end semiconductors are needed to support the technology.
SoftBank Corp and Nippon Telegraph and Telephone Corp are also Rapidus shareholders, along with Kioxia Corp, Denso Corp, NEC Corp and MUFG Bank.
