Japan approved an additional subsidy of 631.5 billion yen to help Rapidus enter the AI chip manufacturing industry.

The Japanese government has approved an additional subsidy of 631.5 billion yen to accelerate Rapidus company's entry into the highly competitive field of artificial intelligence chip manufacturing. This funding is aimed at supporting Rapidus in conducting business for IT company Fujitsu. The Ministry of Economy, Trade and Industry of Japan said on Saturday that the additional funding brings the total amount of expenses and investments injected by the government into this startup company in this fiscal year to 2.6 trillion yen. The department stated that an external committee has inspected Rapidus' wafer plant located in northern Hokkaido, Japan, and has recognized its technological progress. This recently established chip manufacturer 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 dependence on industry-leading company TSMC.