Japan Earmarks Another $5.4 Billion for Chip Startup Rapidus

Japan is allocating an additional ¥802.5 billion ($5.4 billion) to support the chip startup Rapidus Corp., reflecting its determination to secure semiconductor production amid US-China tensions. This funding increases the total public investment in Japan's advanced chip manufacturing efforts to a maximum of ¥1.72 trillion, with an additional ¥100 billion proposed. The Japanese Economy Ministry is also advocating for debt guarantees to attract private sector investment. Rapidus, supported by major companies like Toyota, Sony, and SoftBank, aims to start mass production of next-generation chips by 2027. The ministry has approved significant funding for both front-end and back-end chip processing for the upcoming fiscal year, although public aid is expected to decrease in subsequent years.

Japan has committed approximately ¥5.4 trillion in recent years to regain its leadership in chip technology, focusing on silicon wafers and certain chip materials. Prime Minister Shigeru Ishiba has pledged further public support for the chip and AI sectors, with a bill for loan guarantees and government bonds expected to be submitted to parliament. The government plans to allocate around ¥333 billion in the next fiscal year to boost these sectors. Rapidus is on track to begin operating a pilot line and processing wafers soon, with ongoing discussions with potential corporate and financial partners.

Key takeaways

Japan is preparing an additional ¥802.5 billion ($5.4 billion) in aid for chip startup Rapidus Corp. to secure semiconductors amid US-China tensions.
The total public funding for Japan's advanced chip contractor effort could reach ¥1.72 trillion, with an additional ¥100 billion proposed.
Japan's Economy Ministry is advocating for debt guarantees to encourage private sector investment in Rapidus Corp.
Rapidus aims to begin mass production of next-generation chips by 2027, backed by companies like Toyota, Sony, and SoftBank.

Japan Earmarks Another $5.4 Billion for Chip Startup Rapidus

Key takeaways

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