Japan approves additional $3.9 billion in subsidies for semiconductor firm Rapidus to meet chip goals

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Japan approves additional $3.9 billion in subsidies for semiconductor firm Rapidus to meet chip goals
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Japan is trying to play catch up with other countries such as Taiwan and South Korea in semiconductor manufacturing.

Japan on Tuesday announced it has approved up to 590 billion yen in additional subsidies for chipmaker Rapidus Corporation.

Japan has been striving to reclaim its position as a semiconductor powerhouse, which it lost to countries such as Taiwan and South Korea. Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weeklyThe latest round of support will include up to 53.5 billion yen for research and development of back-end processes such as chip packaging, according to a press briefing by Japan's Ministry of Economy, Trade and Industry on Tuesday.

Rapidus has received 330 billion yen from the Japanese government between 2022 and 2023 to mass produce 2-nanometer chips in Chitose, Hokkaido, from 2027.Typically, a reduction in nanometer size can yield more powerful and efficient chips with more transistors packed onto a single semiconductor.

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