Apr. 10, 2023 /SemiMedia/ -- According to reports, the Japanese Ministry of Economy, Trade and Industry plans to provide an additional 300 billion yen ( $2.27 billion ) to chipmaker Rapidus to build a semiconductor fab in Hokkaido.

Previously Rapidus received initial funding of 70 billion yen from the government. The Ministry of Economy, Trade and Industry is subsidizing 70 billion yen through the New Energy Industry Technology Development Organization (NEDO) fund to help Rapidus' Strengthening 5G Information Communication System Infrastructure Research and Development Project, and will increase the subsidy amount.

The additional subsidy will be used to help Rapidus build a pilot production line planned for 2025.

Rapidus said in February that it needs about 7 trillion yen to start mass-producing advanced logic chips around 2027, backed by U.S. chip giant IBM.