The Japanese government has announced a substantial financial commitment to revitalize its domestic semiconductor industry with a focus on advancing next-generation chip technology. The plan involves an investment of up to 10 trillion yen (approximately $65.1 billion) to support chip manufacturers, particularly those involved in the research and mass production of next-generation chips. Key beneficiaries include the chip foundry Rapidus and AI chip suppliers.
Rapidus, established in August 2022 as a state-backed semiconductor firm, aims to manufacture cutting-edge 2-nanometer chips in Japan by 2025, with plans to commence mass production by 2027. The company has forged a technological partnership with Belgium's microelectronics research center, IMEC, and established a strategic collaboration with IBM (IBM, Financial) to jointly develop 2-nanometer node technology.
This initiative is part of Japan's broader comprehensive economic package, which is expected to receive cabinet approval soon. In addition to the government's direct investment, the plan calls for a combined public and private sector investment of 50 trillion yen over the next decade to fully rejuvenate Japan's semiconductor industry.
The anticipated economic benefits of this plan are significant, with projections estimating a total impact of 160 trillion yen on the Japanese economy.
