Japan boosts Rapidus funding to spur advanced chip production
A new 150 billion yen investment through the IPA backs 2-nm mass production and 1.4-nm research, while giving Tokyo broader voting rights if finances sour.
- The Japanese government has injected an additional 150 billion yen into the chipmaker Rapidus Corp to support domestic semiconductor production.
- This investment is intended to help Rapidus advance towards the mass production of 2-nanometer chips and further research into 1.4-nanometer technology.
- The funding is part of a national strategy, with the government viewing the success of Rapidus as vital to the national interest.
- The agreement allows the government to potentially hold up to 60% of voting rights in Rapidus if the company faces financial difficulties.
Japan has injected another 150 billion yen into Rapidus Corp as the government steps up support for the domestic chipmaker’s plan to build next-generation semiconductors, Industry Minister Ryosei Akazawa said on Friday (June 5).
The funding was channelled through the Information-technology Promotion Agency.
It follows a 100 billion yen capital injection made into Rapidus in February.
The fresh investment is intended to help Rapidus move towards mass production of 2-nanometre chips, while also pushing ahead with research into 1.4-nanometre semiconductors.
Rapidus is “a cornerstone of the government’s growth-oriented investment strategy,” Akazawa told a press conference. “We must ensure its success for the sake of national interest.”
Under the latest arrangement, the government could hold up to 60 per cent of voting rights in Rapidus if the company runs into financial trouble.
In normal circumstances, however, it plans to cap its voting rights at 11.5 per cent, the minimum level held by the largest shareholder, so as not to interfere in the company’s management decisions.
The government is also looking at supplying Rapidus with state-owned assets at the company’s production site in return for equity in the firm.
Rapidus has already received about 2.4 trillion yen in government research and development support.
Officials are also considering a further 300 billion yen in assistance for fiscal 2027.
[Copyright The Jiji Press, Ltd.]
