Japan’s trade ministry to invest 45 billion yen in semiconductor industry

The Japanese trade ministry offers $300 million for chip research organisations in support of the Leading-edge Semiconductor Technology Center (LSTC) for research into cutting-edge semiconductor technology.

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Japan’s trade ministry has announced a considerable financial backing of up to 45 billion yen ($301 million) for the Leading-edge Semiconductor Technology Center (LSTC), which includes chip foundry venture Rapidus, dedicated to advancing cutting-edge semiconductor technology. Rapidus, chaired by Tetsuro Higashi, aspires to mass-produce 2-nanometre logic chips in Hokkaido, fueled by significant subsidies, to compete against industry leaders like Taiwan’s TSMC.

The financial support, a part of Japan’s broader effort to revitalise its chip manufacturing capabilities, reflects the nation’s commitment to rebuilding a robust semiconductor industry. Rapidus, with its ambitious goal of manufacturing advanced logic chips, seeks to rival established players and contribute to Japan’s semiconductor resurgence.

This move aligns with TSMC‘s recent announcement of building a second factory in Japan, which is scheduled to commence operations by 2027. TSMC’s decision underscores the growing confidence in Japan as a strategic hub for semiconductor manufacturing. As Japan strengthens its semiconductor endeavours, financial backing for entities like LSTC becomes pivotal in fostering innovation and competitiveness in the global chip industry. The investments mark a significant step in Japan’s journey towards technological self-sufficiency and a leading position in semiconductor production.