Japan's chipmaker Rapidus to receive extra $3.9 bil. in govt. aid

Japan's industry ministry will provide domestic semiconductor maker Rapidus with up to 590 billion yen, or nearly 3.9 billion dollars in additional financial assistance.

Japanese Industry Minister Saito Ken made the announcement on Tuesday.

Saito said the ministry will make all-out efforts for the success of the next-generation semiconductor project while securing the necessary budget. He added, "We recognize that the technology Rapidus is working on is important and will help determine the future of the country's industrial and economic growth."

Rapidus is constructing a new factory in the city of Chitose in Hokkaido, northern Japan. The company plans to build a prototype production line next year and will start mass-producing semiconductors in around 2027.

The additional money will cover the cost of installing chip making equipment, as well as further research and development.

Tokyo has already committed more than 2 billion dollars to the project. The new aid will raise the total to about 6 billion dollars.

Rapidus was established with the support of eight major Japanese corporations in 2022 in a bid to reduce the country's heavy reliance on imported chips.