Japan’s government has approved an additional 631.5 billion yen (about $3.96 billion) in funding for semiconductor startup Rapidus, intensifying its drive to secure a foothold in the global AI chip race.
The latest support, announced by the Ministry of Economy, Trade and Industry, aims to accelerate research and development of advanced 2-nanometre chips, which are expected to power next-generation artificial intelligence systems and high-performance computing infrastructure.
A statement from the ministry read: “The government will provide 631.5 billion yen in additional assistance to chipmaker Rapidus Corp. to support its 2-nanometer chip production,” as disclosed by industry officials at a facility event in Hokkaido.
With the new allocation, total public support for Rapidus has risen to about 2.35 trillion yen ($15–16 billion), reflecting Japan’s long-term strategy to rebuild its domestic semiconductor industry and reduce reliance on overseas manufacturers.
Industry Minister Ryosei Akazawa emphasised the strategic importance of the initiative, stating, “We will spare no effort in providing support necessary to ensure the plan’s success,” during remarks at the opening of a semiconductor facility in northern Japan.
Rapidus CEO Atsuyoshi Koike also pointed to rapid development progress, saying the company is working “at the fastest possible pace” to meet its quality and yield targets ahead of mass production.
The government-backed firm, established in 2022 with support from major Japanese corporations including Sony, Toyota, NTT, and SoftBank, is targeting mass production of 2nm chips by fiscal 2027. The technology is widely viewed as critical for advanced AI workloads, data centres, and emerging computing applications.
The funding expansion comes amid intensifying global competition in semiconductor manufacturing, as countries race to secure leadership in advanced chip design and production.
Japan sees Rapidus as a cornerstone of its strategy to regain influence in a sector it once dominated but lost ground in over the past two decades.
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