Japan Approves ¥590B Subsidies for Chip Venture Rapidus

TOKYO, Japan—Japan has approved subsidies of up to JPY 590 billion ($3.9 billion) for chip company Rapidus as the country seeks to catch up in semiconductor manufacturing. 

According to Economy Minister Ken Saito, the additional funding will help Rapidus purchase chip-making equipment and develop advanced back-end chip-making processes.

Rapidus, a 19-month-old startup, has already received billions of yen in public funds to mass-produce chips in Hokkaido and compete with industry leaders such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics. 

The latest sum is part of the 4 trillion yen Japan has earmarked over the past three years to restore its former chipmaking prowess.

The government's commitment to Rapidus is part of Prime Minister Fumio Kishida's goal of 10 trillion yen in financial support for chipmakers and the private sector. 

Japan has also invested in TSMC's first fab in Kumamoto Prefecture and Micron Technology's expansion of its fab in Hiroshima.

The government's efforts to boost the domestic chip industry come amid rising geopolitical tensions and recognition of semiconductors' critical role in various sectors, including automotive, energy, defense, and consumer electronics.