Japan reallocates over 900 million USD to support chip startup Rapidus

On August 21, the Japanese government will allocate an additional 150 billion yen (approximately 944 million USD) to support the chip startup Rapidus, increasing spending in hopes of competing with companies like TSMC. According to a knowledgeable source, the Ministry of Economy, Trade and Industry of Japan will seek more funding for this domestic contract chip manufacturer in the fiscal year 2027 budget.

This government-supported joint venture was established in 2022, aiming to manufacture cutting-edge 2-nanometer chips by 2027 and help Japan reduce its dependence on TSMC. Policymakers view the success of Rapidus and technological independence in AI, robotics, and quantum computing as crucial to national security.