- Japan announces over ¥1 trillion to strengthen semiconductor manufacturing.
- Rapidus receives major funding to begin 2nm chip production.
- The government may adopt a golden share to safeguard national interests.
Japan has revealed a new funding initiative exceeding ¥1 trillion to boost its domestic semiconductor production capabilities, representing one of the nation's most significant technology investments so far. The funds will mainly assist Rapidus, Japan’s leading chipmaker, as it progresses towards large-scale production of 2-nanometre (2nm) next-generation chips.
As per various reports, the Japanese government intends to designate roughly ¥630 billion in fiscal 2026 and a further ¥300 billion in fiscal 2027. The new funding will be provided via direct grants, infrastructure assistance, and in-kind contributions such as government-sponsored manufacturing plants and specialized tools. With these allocations, Rapidus is set to obtain the biggest portion of Japan’s semiconductor budget, reinforcing its role as a key element in the nation’s tech strategy.
Rapidus, supported by Japan's Ministry of Economy, Trade and Industry (METI), intends to commence large-scale production of 2nm chips by fiscal 2027. This would position Japan alongside the global frontrunners in cutting-edge semiconductor technology, rivaling major players in Taiwan, South Korea, and the United States.
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Japan’s revitalized semiconductor initiative is a segment of a larger strategy to enhance local production capacity in response to worldwide chip shortages, growing geopolitical conflicts, and the surging need for AI-compatible processors. The government has suggested that overall investments in the sector, encompassing private capital might hit ¥5 trillion to ¥7 trillion in the upcoming years.
Multiple reports indicate that the fresh financing could encompass equity-linked assistance, potentially positioning the Japanese government as the top shareholder in Rapidus. A "golden share" setup is anticipated, granting the government veto authority over key business choices to protect national interests.