Japan approves US$3.9 billion in aid to chip venture Rapidus
- The additional funding will help Rapidus buy chip-making equipment and develop advanced back-end chip-making processes, Economy Minister Ken Saito said
- Rapidus is teaming up with researchers at IBM as well as its own experts in nanotech and materials to close the gap with TSMC in cutting-edge fabrication
Japan approved up to ¥590 billion (US$3.9 billion) in subsidies to chip venture Rapidus, committing more money to its ambition to catch up in semiconductor manufacturing.
The additional funding will help Rapidus buy chip-making equipment and also develop advanced back-end chip-making processes, Economy Minister Ken Saito said.
The amount is on top of billions of public money the 19-month-old start-up has already received in its long-shot bid to mass-produce chips in Japan’s northernmost prefecture of Hokkaido and compete with leaders Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics.
“The next-generation semiconductors Rapidus is working on are the most important technology that will dictate the future of Japanese industry and economic growth,” Saito said during a regular news conference Tuesday in Tokyo. “This fiscal year is extremely important for Rapidus.”
Japanese chip equipment makers rose on the news with Tokyo Electron climbing as much as 3.2 per cent and Disco gaining 2.3 per cent during early morning trade.