Japan approves $3.9 billion subsidy to Japanese chip manufacturer Rapidus
Japan has approved subsidies of up to 590 billion yen (3.9 billion US dollars) to local chip company Rapidus, investing more funds in its ambition to catch up in semiconductor manufacturing.Japanese Minister of Economy, Trade and Industry Ken Saito said that additional funds will help Rapidus purchase chip manufacturing equipment and develop advanced backend chip manufacturing processes. This startup, which has only been established for 19 months, has received billions of dollars in public funding to produce chips on a large scale in Hokkaido and compete with leading TSMC and Samsung Electronics companies.
Jian Saito stated that the next generation semiconductor being developed by Rapidus is the most important technology that will determine the future of Japan's industrial and economic growth, and this fiscal year is extremely important for Rapidus.
This funding is part of approximately 4 trillion yen that Japan has reserved over the past three years to restore some of Japan's previous chip manufacturing capabilities. Japanese Prime Minister Fumio Kishida's goal is to provide 10 trillion yen in financial support to chip manufacturers and the private sector. Japan has invested billions of dollars in the construction of TSMC's first factory in Kumamoto, Japan, as well as the expansion of Meiguang Hiroshima factory to produce advanced DRAM.
Rapidus is collaborating with researchers from IBM and its own nanotechnology and materials experts to narrow the gap with TSMC in cutting-edge manufacturing technology.
Saito Ken said that part of the reason for Japan's 30-year economic stagnation and loss of international competitiveness is a lack of understanding of the importance of semiconductors for digitization, decarbonization, and economic security. "It is not an exaggeration to say that chips are the foundation of China's and even the world's industry."
It is understood that Rapidus is a contract manufacturing company jointly established by eight large Japanese enterprises, including Toyota, Armor, Sony, NTT, SoftBank, Nippon Electric, Denso, and Mitsubishi UFJ, in August 2022, dedicated to the localization of cutting-edge semiconductors.
This funding is part of approximately 4 trillion yen that Japan has reserved over the past three years to restore some of Japan's previous chip manufacturing capabilities. Japanese Prime Minister Fumio Kishida's goal is to provide 10 trillion yen in financial support to chip manufacturers and the private sector. Japan has invested billions of dollars in the construction of TSMC's first factory in Kumamoto, Japan, as well as the expansion of Meiguang Hiroshima factory to produce advanced DRAM.
Rapidus is collaborating with researchers from IBM and its own nanotechnology and materials experts to narrow the gap with TSMC in cutting-edge manufacturing technology.
Saito Ken said that part of the reason for Japan's 30-year economic stagnation and loss of international competitiveness is a lack of understanding of the importance of semiconductors for digitization, decarbonization, and economic security. "It is not an exaggeration to say that chips are the foundation of China's and even the world's industry."
It is understood that Rapidus is a contract manufacturing company jointly established by eight large Japanese enterprises, including Toyota, Armor, Sony, NTT, SoftBank, Nippon Electric, Denso, and Mitsubishi UFJ, in August 2022, dedicated to the localization of cutting-edge semiconductors.