Japanese government considering investment in Rapidus

The Japanese government is considering investing in chipmaker Rapidus Corp., which aims to start mass-producing a next-generation semiconductor in 2027, sources said Saturday.

The government apparently hopes the move will help spur private-sector investments in and loans to Rapidus by increasing the company’s credibility.

Rapidus is building a plant in the city of Chitose in Hokkaido Prefecture and promoting fund procurement in the run-up to the planned start of mass production.

The government is making efforts to encourage the domestic private sector to provide funding to the semiconductor industry to beef up the country’s industrial competitiveness and economic security.

It is preparing to submit a bill allowing government investment to an extraordinary parliamentary session this autumn at the earliest, with support for Rapidus in mind.

Rapidus plans to mass-produce the most advanced semiconductors with a circuit line width of 2 nanometers, with the project seen costing as much as ¥5 trillion. The government has decided to provide up to ¥920 billion in aid for research and development at the firm.

“At the moment, no decision has been made on government investment in Rapidus,” industry minister Ken Saito said at a news conference Friday, adding, “We will consider submitting related legislation to the parliament early, keeping up with Rapidus’ efforts.”

Rapidus also faces a challenge of raising capital from the private sector. Currently, private-sector investment in the company has been limited at ¥7.3 billion, which came from firms including Toyota Motor Corp., Sony Group Corp. and Nippon Telegraph and Telephone Corp.