Japan plans a further 400 billion yen investment in chipmaker Rapidus
The proposed funding would lift government investment to 650 billion yen and raise the chipmaker’s equity ratio to help it secure commercial loans.
- Japan's industry ministry plans to invest an additional 400 billion yen in chipmaker Rapidus between fiscal years 2027 and 2029.
- This new funding will bring the total government investment in the company to 650 billion yen, supplementing a previous 250 billion yen commitment.
- The investment is aimed at helping Rapidus achieve mass production of advanced chips, starting with 2-nanometre technology in fiscal 2027.
- By increasing the company's equity, the government also aims to improve Rapidus's ability to secure loans from commercial banks.
Government investment in Rapidus Corporation would reach 650 billion yen under a Japanese industry ministry plan to provide a further 400 billion yen over fiscal 2027–2029.
The Tokyo-based company needs sufficient funding to move into mass production of advanced chips, starting with a 2-nanometre line width in fiscal 2027 before progressing to 1.4 nanometres.
The additional investment would supplement the 250 billion yen the government has already decided to invest.
By increasing Rapidus’ equity ratio, the ministry aims to improve the company’s access to loans from commercial lenders.
Of the proposed new investment, 150 billion yen is sought in the ministry’s fiscal 2027 budget request.
It hopes to request another 150 billion yen for fiscal 2028, followed by 100 billion yen for fiscal 2029.
The plan was outlined at Monday’s meeting of a Fiscal System Council subcommittee.
The council advises the finance minister.
[Copyright The Jiji Press, Ltd.]
