The Japanese government is stepping up its support for "Japanese version of TSMC", with a total investment of 16 billion US dollars to help Rapidus enter the AI chip market.

Japan has approved an additional 631.5 billion yen (40 billion US dollars) subsidy to Rapidus Corporation to accelerate the company's entry into the competitive AI chip manufacturing field. This funding is aimed at providing financial support for services provided by Rapidus to the IT company Fujitsu Ltd. Fujitsu is one of the first customers that the Japanese government hopes will help kickstart this flagship project. The Ministry of Economy, Trade and Industry of Japan stated on Saturday that this new funding will bring the total amount of costs and investments injected by the government into this startup company to 2.6 trillion yen (approximately 163 billion US dollars) by the end of the current fiscal year ending in March 2027. The Ministry of Economy, Trade and Industry also mentioned that an external committee inspected Rapidus' foundry located in Hokkaido, northern Japan, and recognized its technological advancements. The emerging company started developing wafers using 2-nanometer technology last year, with the goal of mass producing cutting-edge semiconductors by 2027 and helping Japan reduce its reliance on industry leader Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US). Japanese policymakers view Rapidus' success and technological independence in the fields of artificial intelligence, Siasun Robot&Automation, and quantum computing as crucial for national security. There is still a significant gap between this Japanese chip manufacturer and Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR began mass producing 2-nanometer chips last year and is the preferred chip supplier for NVIDIA Corporation (NVDA.US) and Apple Inc. (AAPL.US). Apart from technological barriers, Rapidus like other resource-strapped Japanese manufacturers is also facing pressure from rising energy and raw material costs during the Middle East conflict. With the surge in demand for critical chips for artificial intelligence development resulting in global shortages of memory and other semiconductors, threatening economic stability, Tokyo is placing its hopes on Rapidus. According to a statement released by the Ministry of Health, Labour and Welfare of Japan, Rapidus plans to conduct its first IPO around the fiscal year 2031, aiming to raise around 3 trillion yen in public financing, with part of the funds coming from government loan guarantees. The company has established an analysis center in Chitose City, Hokkaido, for testing and diagnosing Rapidus' chips to improve chip yield; in addition, its backend process development center has also started operating.