Japan boosts funding for chipmaker Rapidus in semiconductor race
Rapidus collaborates with IBM to accelerate mass production of advanced chips by 2027.
The Japanese government has announced plans to invest an additional 200 billion yen ($1.3 billion) in Rapidus Corp. in fiscal 2025, aiming to enhance the domestic semiconductor industry. This follows a 920 billion yen package already allocated to support the chipmaker, with the added funding expected to attract private-sector investment to strengthen Japan‘s supply chain for next-generation chips.
Rapidus, a venture formed in 2022 by major Japanese companies like Toyota and Sony, estimates it will require around 5 trillion yen to complete a cutting-edge manufacturing plant in Hokkaido. The plant aims to begin mass production of advanced semiconductors by 2027. The project has also secured technical collaboration with United States tech giant IBM, ensuring access to key expertise in chip development.
The government is set to approve a comprehensive financial package that includes the new funding and potential loan guarantees, highlighting its focus on revitalising the once-dominant semiconductor industry. The move aligns with Japan’s strategy to mitigate geopolitical risks and compete in the global chip market, which remains critical for technologies from AI to electric vehicles.
The additional funding underscores Japan’s commitment to regaining a leading position in the semiconductor supply chain amid growing global competition. By fostering public-private partnerships and strengthening technological capabilities, Japan aims to reduce reliance on foreign suppliers and secure its stake in an increasingly vital industry.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.
