Tokyo, 25 July, /AJMEDIA/
Japanese Prime Minister Fumio Kishida vowed Wednesday to craft legislation aimed at supporting the domestic production of advanced semiconductors by helping manufacturers secure enough funding.
“I will be seeking the early submission to parliament of a bill necessary for the mass production of next-generation chips,” which will require heavy investment, Kishida told reporters after inspecting a Rapidus Corp factory under construction in Hokkaido, northern Japan.
The prime minister said the government will support the chip industry’s investment and research and development programs “on a large scale and systematically.”
The government is considering providing additional funding as well as guarantees on loans to companies in the domestic chip industry, government sources said.
The Economy, Trade and Industry Ministry has pledged to offer a total of 920 billion yen in subsidies to Rapidus to promote technologies critical to the country’s economic security.
Rapidus is currently constructing its new plant in Hokkaido’s Chitose and aims to begin manufacturing state-of-the-art 2-nanometer semiconductors with the technical backing of U.S. tech giant IBM Corp in 2027.
The Japanese government-backed venture was established in 2022 by eight major Japanese companies including Toyota Motor Corp and Sony Group Corp.
Rapidus estimates it needs about 5 trillion yen to complete the Hokkaido plant and begin mass-producing the chips.
Kishida’s administration expects the development and production of advanced semiconductors to be a driver for revitalizing the regional economy and achieving wage growth.
In addition to supporting domestic chip companies, the government is providing up to 1.2 trillion yen for the world’s leading contract chipmaker Taiwan Semiconductor Manufacturing Co to build two factories in Kumamoto Prefecture, southwestern Japan.
The first Kumamoto plant opened in February as a joint venture with Sony, Toyota and Denso Corp, while the second one is scheduled to commence mass production in 2027.
