- Japan has invested more than $5.000 billion in Rapidus to boost its chip industry.
- The government is seeking to reduce its dependence on TSMC and consolidate its technological independence.
- Rapidus is preparing to launch 2nm production and increase capacity in the coming years.
- Companies such as Toyota, Sony, and SoftBank are supporting this new phase of Japanese industrial development.
Japan is taking a decisive step in its race to regain prominence in the global semiconductor industry. Through a multi-million-dollar public investment, the Japanese government has reaffirmed its commitment to the company. Rapidus Corporation, considered the most advanced in chip industrial development within the country. This measure seeks not only to boost local production, but also reduce technological dependence from foreign companies, especially Taiwanese TSMC.
In an increasingly unstable geopolitical context, with rising tensions between China and Taiwan, the commitment to domestic production of critical technology such as chips makes more sense than ever. The Ministry of Economy, Trade and Industry of Japan has approved new economic aid of up to 802.500 billion yen, which is roughly equivalent to 5.400 million, intended to strengthen Rapidus operations, especially at its advanced manufacturing plant located in Chitose, Hokkaido Island.
A multi-million dollar government backing
The announced aid adds to an even greater financial effort undertaken by the Japanese government in recent years. Since 2021, the country has channeled more than 1,73 trillion yen -around 11.460 million— to stimulate research, development, and manufacturing of advanced chips, with the aim of repositioning itself as a leading technological power in this strategic sector.
Rapidus, founded in 2022 with the participation of giants such as Toyota Motor Corporation, Sony Group y Softbank, has been chosen as a symbol of Japanese technological reindustrialization in the semiconductor sector. The company is focused on developing manufacturing processes for 2 nanometers, aspiring to compete with global leaders such as Intel, Samsung and the aforementioned TSMC.
The government has not only injected direct capital, but is also providing debt guarantees to encourage private investment. This is expected to attract new industrial and financial partners that will allow Rapidus to scale its production capacity.
Hisashi Kanazashi, director of the information technology division of the Ministry of Economy, said that negotiations with potential private investors are proceeding as planned and anticipates that Private sector support will be more visible during the next fiscal year.
Reducing geopolitical risk is key
One of the main objectives behind this investment is reduce Japan's exposure to external risks, particularly those arising from its current technological dependence on Taiwan. TSMC, the world's leading chip supplier, has its main facilities on the island, a territory that China considers part of its sovereignty, while other countries consider it an autonomous entity.
In this regard, Japan is following in the footsteps of the United States, which is also intensifying its investments to recover part of the semiconductor industry that it lost in recent decades. Compared to the American push, which includes aid in the order of 50.000 millionThe Japanese effort may seem modest, but it is part of a long-term strategy focused on technological security and competitiveness.
According to statements by Japanese government officials, Complementarity with local and international companies will be vital For this plan to be successful, the idea is to create a robust ecosystem that integrates not only production but also research, chip design, and logistics, in which private companies and public organizations work hand in hand.
Rapidus prepares its pilot manufacturing line
Within the industrial deployment plan, Rapidus is expected to begin its production line in pilot phase in April This year, the company intends to process its first batch of wafers before the summer, which would be an important milestone in demonstrating its technological viability.
Furthermore, a collaboration with Broadcom will allow the latter to test chips manufactured with Rapidus' 2-nanometer process. Although Intel has already made progress with its technology Intel 18A and has also captured the interest of companies like NVIDIA, Japan sees Rapidus as a viable alternative. Expectations are that by 2027 the company is ready to scale to a mass production, an essential condition for Japan to achieve sustainable technological autonomy.
In parallel, the Japanese Prime Minister has announced the launch of additional tax measures to improve the country's competitiveness in this sector. This includes loan guarantees, issuance of public bonds, and new funds intended to facilitate the arrival of other international chip manufacturers seeking to establish themselves in Japan.
An increasingly competitive global environment
The trade and technology war between the United States and China has set off alarm bells around the world. According to industry experts such as Emilio García and Marimar Jiménez, The race for control of the semiconductor industry is not only economic, but also geopolitical.The United States is trying to slow China's technological advance, while Beijing seeks to achieve self-sufficiency, especially in advanced chips. Amid this struggle, Japan sees an opportunity to position itself as a reliable alternative in the global supply chain.
Europe, for its part, has also embarked on its own path towards reindustrialisation of the sector, although without the level of cohesion and financing shown by Japan or the US. In this context, the Japanese model, with a company like Rapidus acting as a “national champion”, is presented as an example of How public-private collaboration can articulate a strategic response to a global economic and technological challenge.
The importance of this industry is not limited to the technology sector alone. Chips are essential for electric vehicles, artificial intelligence, defense or telecommunications, so control of its production is seen as a key factor of industrial sovereignty and national security.
The Japanese commitment to Rapidus thus represents much more than a simple investment: it is a commitment to the industrial future of the country. In an increasingly digitalized world, those who control semiconductor technology will be able to set the pace for the coming decades in terms of economic growth, geopolitical influence, and technological development. Japan knows this, and has begun to move decisively.
I am a technology enthusiast who has turned his "geek" interests into a profession. I have spent more than 10 years of my life using cutting-edge technology and tinkering with all kinds of programs out of pure curiosity. Now I have specialized in computer technology and video games. This is because for more than 5 years I have been writing for various websites on technology and video games, creating articles that seek to give you the information you need in a language that is understandable to everyone.
If you have any questions, my knowledge ranges from everything related to the Windows operating system as well as Android for mobile phones. And my commitment is to you, I am always willing to spend a few minutes and help you resolve any questions you may have in this internet world.