Japan has approved an additional ¥631.5 billion (approximately $3.96 billion) in funding to accelerate research and development at semiconductor firm Rapidus, the government announced on Saturday.
The funding, provided by Japan’s industry ministry, is part of a broader push to strengthen domestic production of advanced semiconductors and secure resilient chip supply chains amid growing global competition.
With the latest allocation, total government support for Rapidus’ research and development has reached ¥2.354 trillion. The company is focused on developing next-generation logic semiconductors at the 2-nanometre level and aims to begin mass production by fiscal year 2027.
The ministry also said its affiliated body, New Energy and Industrial Technology Development Organization (NEDO), will support semiconductor design-related projects involving Fujitsu and IBM Japan.
The move underscores Japan’s commitment to rebuilding its semiconductor industry and reducing reliance on foreign chipmakers, particularly as geopolitical tensions and supply disruptions continue to impact global markets.
Earlier this year, Rapidus secured around ¥160 billion in private sector investment, alongside a planned ¥250 billion in government backing, further reinforcing its strategic importance to Japan’s technology ambitions.