December 5, 2024 /SemiMedia/ — The Japanese government plans to allocate an additional ¥800 billion (approximately $5.4 billion) to Rapidus in its supplementary budget this year to advance domestic development of next-generation semiconductors, according to sources.

This funding is part of the government’s ¥1.6 trillion support package for the semiconductor and artificial intelligence (AI) sectors. Rapidus aims to achieve 2nm chip mass production by 2027, requiring an estimated ¥5 trillion in total investment. While the government has already pledged ¥920 billion in support, a funding gap of around ¥4 trillion remains. The new subsidy will cover research, development, and operational costs.

Rapidus began construction of its first factory, IIM-1, in Chitose, Hokkaido, in September 2023. The facility plans to start trial production in April 2025 and enter mass production by 2027.

The Japanese government emphasizes the growing importance of semiconductors for economic security. Since fiscal 2021, it has invested ¥3.9 trillion in the semiconductor industry, including Rapidus. Last year’s supplementary budget allocated ¥1.8 trillion, and a similar level of funding is expected this year.