The Japanese government is contemplating acquiring a stake in Rapidus Corp, a domestic chip venture, in an effort to increase financial support for the company from the private sector. This potential plan involves exchanging part of the government-owned factory for shares in Rapidus, with details such as timing and size yet to be determined.
Semiconductors have been identified as strategically important by the government for economic growth and security purposes, leading to a 920 billion yen subsidy for Rapidus to produce cutting-edge 2-nanometer chips. Despite investments from major Japanese companies like Toyota, SoftBank, and NTT totaling 7.3 billion yen, Rapidus estimates a need for around 5 trillion yen to complete its Hokkaido plant and begin mass production in 2027 with technical support from IBM.
This potential government investment in a new venture like Rapidus is rare, and scrutiny will be high given the potential risks to taxpayers. By acquiring shares, the government can increase its involvement in the company’s management. Additional support for mass production and research will be considered as the government assesses the venture’s performance.
© KYODO