Japan Invests $3.9 Billion in Rapidus Chip Venture to Boost Tech Dominance

Japan approves ¥590 billion ($3.9 billion) in aid to semiconductor venture Rapidus to enhance chip production capabilities.

Funds aimed at acquiring chipmaking equipment and advancing back-end chipmaking processes.

Economy Minister Ken Saito highlights the role of next-generation semiconductors in Japan's industrial and economic growth, particularly for the fiscal year.

Announcement leads to stock price increases for Japanese chip equipment makers like Tokyo Electron Ltd. and Disco Corp.

Part of a broader strategy, allocating ¥4 trillion over three years to rejuvenate Japan's semiconductor manufacturing, with a target of ¥10 trillion in support including private sector collaboration.

Move reflects worldwide efforts to strengthen domestic semiconductor production due to geopolitical tensions and recognition of the sector's strategic significance.

Rapidus partners with Japanese nanotechnology and materials scientists, aiming to close the gap with leading manufacturers like TSMC.

Subsidies to support the pilot line at Rapidus's Chitose plant, in partnership with IBM Corp., to streamline processes and develop advanced packaging technologies.

Rapidus plans to mass-produce 2-nanometer process semiconductors by 2027, aiming for production cycles twice as fast as competitors.

Minister Saito links Japan's past economic stagnation to underestimating the semiconductor industry's value, emphasizing the foundational role of chips in modern industries and economic security.

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