Government seeks to ensure stable supplies of semiconductors
The Japanese government on April 11 announced it will provide an additional $4 billion in funding to state-backed Rapidus to boost domestic chip production. © Reuters
TOKYO (Kyodo) — The Japanese government on Saturday approved the disbursement of an additional 631.5 billion yen ($4 billion) to state-backed Rapidus for its research and development of advanced chips, as the country seeks to ensure stable supplies of semiconductors.
The latest assistance for fiscal 2026 through next March brings the total extended to Rapidus for development purposes to 2.35 trillion yen, according to the Ministry of Economy, Trade and Industry.
Japan wants to boost domestic chip production and guard against external shocks and risks, such as the recent flare-up in Sino-Japanese tensions. Prime Minister Sanae Takaichi has underlined the need to step up investment in areas critical for national security.
Established in 2022, Rapidus has secured funding from both the public and private sectors. It is aiming to mass-produce advanced chips using 2-nanometer technology in the second half of fiscal 2027.
The industry ministry also decided to extend financial support to Fujitsu and IBM Japan, with an eye to them outsourcing production of their energy-efficient AI chips to Rapidus.