November 25, 2024 /SemiMedia/ — The Japanese government is accelerating efforts to boost its domestic semiconductor industry, planning to invest 200 billion yen ($1.3 billion) in chipmaker Rapidus in fiscal 2025. The move aims to attract private-sector funding and help Rapidus achieve its goal of mass-producing 2nm chips by 2027, while granting the government greater governance authority compared to traditional subsidy models.

Producing 2nm chips is expected to require a total investment of 5 trillion yen. While the government has pledged 920 billion yen in subsidies, a significant funding gap remains. To address this, the government plans to provide debt guarantees and make investments through state agencies, with details to be outlined in an upcoming economic stimulus package.

Private financial institutions are also considering investments to support the project. Additionally, the government plans to exchange public assets for equity in Rapidus to enhance oversight of critical production capabilities.

Rapidus’s factory in Hokkaido is expected to begin trial production of 2nm chips, with mass production scheduled for 2027. The company has attracted private investment from major corporations, and more companies are planning to contribute.

Through diversified funding channels and active corporate governance, the Japanese government aims to position Rapidus as a key driver of its domestic semiconductor industry's revival while building a foundation for future technological competitiveness.