Japan is doubling down on its semiconductor ambitions, approving nearly $4 billion in additional funding for domestic chipmaker Rapidus.

The investment, announced by Ministry of Economy Trade and Industry Japan, is aimed at accelerating research and development of next-generation chips and strengthening the country’s position in the global semiconductor race, News.Az reports, citing Reuters.

With this latest injection of 631.5 billion yen (about $3.96 billion), total government support for Rapidus’ R&D efforts now stands at over 2.3 trillion yen.

Rapidus is currently focused on developing cutting-edge 2-nanometre logic semiconductors, a technology seen as critical for future innovations in AI, computing, and advanced electronics. The company aims to begin mass production by 2027.

The initiative also includes backing from New Energy and Industrial Technology Development Organization (NEDO), which will support semiconductor design projects involving:

• Fujitsu
• IBM Japan

This highlights a broader effort to build a complete domestic semiconductor ecosystem, from design to manufacturing.

Earlier this year, Rapidus secured:

• Around 160 billion yen from private investors
• A planned 250 billion yen in additional government funding

The new funding further accelerates Japan’s push to reduce reliance on foreign chip suppliers and secure its supply chains.

Semiconductors are at the heart of modern technology—from smartphones to artificial intelligence—and countries around the world are racing to secure their own production capabilities.

Japan’s latest move signals:

• A stronger commitment to technological independence
• Growing competition with global chip leaders
• Increased focus on next-generation chip innovation

As the race for smaller, faster, and more efficient chips intensifies, Rapidus is positioning itself as a key player in the future of semiconductor manufacturing.

News.Az 

By Aysel Mammadzada