Japan boosts semiconductor push to shield global supply chains: Here’s why
The new rule will help to elevate domestic production of advanced semiconductors and strengthen supply chains
Japan’s Ministry of Economy, Trade and Industry approved an additional 631.5 billion yen ($3.96 billion) on Saturday to accelerate research and development at chipmaker Rapidus. This is a part of a broader government strategy to boost domestic production of advanced semiconductors and secure chip supply chains. Additionally, the New Energy and Industrial Technology Development Organization (NEDO) has decided to support semiconductor design projects by Fujitsu and IBM Japan.
According to Reuters, the recent shift underscores broader efforts to build a complete domestic semiconductor ecosystem, spanning from design to manufacturing. Rapidus has already secured approximately an additional 160 billion yen from private investors, with an additional 250 billion yen in government planned. This new capital aligns with Japan’s initiative to reduce reliance on foreign suppliers and secure its supply chains.
Japan’s Rapidus investment: What this move signals
The primary motive behind this initiative is to foster technological independence amidst growing competition among global chip leaders. This investment will ultimately sharpen the focus on next-generation chip innovation. As the global race for smaller, faster, and more efficient components intensifies, Rapidus is positioning itself as a central player in semiconductor manufacturing. The company is currently developing next-generation 2-nanometre logic chips, with plans to begin mass production in fiscal year 2027.
-
TikTok owner ByteDance finalizes $29.6 billion loan amid AI growth drive
-
Norway’s $2 trillion sovereign fund proposes deep cuts to US Treasury holdings: Here’s why
-
Canadian economy loses 42,000 jobs as US tariffs cloud economic outlook
-
US diesel prices hit an all-time-high: report
-
OpenAI pledges $1 billion for cyberdefense as AI safety scrutiny mounts
-
Revolut wins conditional US National bank charter approval: What’s next?
-
Elon Musk confirms Starlink is officially live in UAE: Know all details
-
Trump $1 coin could break a century-old US currency tradition: Here’s why
-
Thomson Reuters confirms cybersecurity incident, says unauthorized party accessed sensitive files
-
Bank of Canada holds interest rates as Canada-US trade war escalates
-
Dell shares spike as surging AI server demand spurs record forecast raise
-
Range Rover's first-ever electric vehicle is here: Key specifications explained
