TOKYO:  Japan’s industry ministry said Tuesday that it has decided to provide up to 590 billion yen in additional assistance to Rapidus Corp., which is aiming to domestically produce next-generation semiconductors.

Through the additional aid, the ministry hopes to help the Japanese company accelerate the development of advanced chips, essential for autonomous driving and artificial intelligence technologies.

As the ministry has already committed 330 billion yen to Rapidus, the total state assistance to the chipmaker will reach nearly 1 trillion yen.

“The next-generation semiconductors that Rapidus is working on are the most important technology that will determine the future of Japanese industries and the future economic growth of Japan,” industry minister SAITO Saito said at a press conference Tuesday. “We will do our best to support the project for its success.”

Of the additional subsidies, Rapidus is expected to use up to 53.5 billion yen to develop advanced technology for the chip assembly and testing process, in cooperation with U.S. technology giant IBM Corp. and a German research institute. Meanwhile, a maximum of 536.5 billion yen will cover costs for factory construction and introduction of chipmaking equipment.

Rapidus was established in 2022 to produce chips with a circuit line width of 2 nanometers, the most advanced type of semiconductor. It has received investment from eight major Japanese companies including Toyota Motor Corp., Nippon Telegraph and Telephone Corp. and NEC Corp.

It is building a factory in Chitose, Hokkaido, northernmost Japan, planning to bring a pilot production line into operation in 2025 and begin mass production in 2027.

JIJI Press