April 1, 2025 /SemiMedia/ — Japan is ramping up its efforts to strengthen domestic semiconductor manufacturing by allocating an additional ¥802.5 billion (approximately $5.4 billion) in funding to chip startup Rapidus. This move underscores Japan's commitment to securing its semiconductor supply chain amid rising global tensions.

On March 31, the Ministry of Economy, Trade, and Industry (METI) announced that it has approved ¥675.5 billion in support for front-end chip manufacturing and an additional ¥127 billion for back-end processes, including packaging and testing. This brings Japan’s total financial commitment to Rapidus to ¥1.72 trillion.

Rapidus plans to launch a pilot production line in April and aims for mass production of next-generation chips by 2027. Backed by major Japanese corporations such as Toyota, Sony Group, and SoftBank, the company is pursuing an ambitious goal to establish itself as a key player in the advanced semiconductor industry and compete with global giants like TSMC.