Japan yesterday approved as much as ￥590 billion (US$3.9 billion) in subsidies to chip venture Rapidus Corp, committing more money to its ambition to catch up in semiconductor manufacturing.
The additional funding will help Rapidus buy chipmaking equipment and also develop advanced back-end chipmaking processes, Japanese Minister of Economy, Trade and Industry Ken Saito told a news conference in Tokyo.
The amount is on top of ￥330 billion of public money the 19-month-old start-up has already received in its bid to mass produce chips in Japan’s Hokkaido Prefecture and compete with industry leaders Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co.
Photo: AFP
“The next-generation semiconductors Rapidus is working on are the most important technology that will dictate the future of Japanese industry and economic growth,” Saito said. “This fiscal year is extremely important for Rapidus.”
The sum is part of about ￥4 trillion Japan has earmarked over the past three years to regain some of its former chipmaking prowess, with Japanese Prime Minister Fumio Kishida targeting ￥10 trillion in financial support to chipmakers, along with the private sector.
Japan has committed billions of dollars into TSMC’s first factory in Kumamoto Prefecture, as well as to Micron Technology Inc’s expansion at its Hiroshima plant to make advanced DRAM.
Geopolitical tensions are spurring governments around the world to broaden domestic capabilities to make semiconductors, which are crucial for running vehicles, power plants and weapons systems, as well as consumer electronics.
The US has also pledged billions of dollars to chipmakers, but delays in licensing and subsidy allocations have held back factory construction plans.
Rapidus is teaming up with the country’s researchers in nanotechnology and materials to close the gap with TSMC in cutting-edge fabrication technology.
TSMC holds the biggest share of the world’s outsourced advanced chip production, with closest rival Samsung struggling for years to catch up.
As much as ￥536.5 billion of the newly approved subsidies will be used to install equipment for the pilot line at Rapidus’ Chitose plant, enlist researchers from IBM Corp, shorten turnaround times and build a production control system, the Japanese Ministry of Economy, Trade and Industry said.
The remaining ￥53.5 billion will be used to develop advanced packaging technologies to help combine multiple chips to generate more capabilities, it said.
Packaging is an area that is grabbing more attention as squeezing more transistors onto a single sliver of silicon gets increasingly costly.
Japan’s three decades of economic stagnation and loss of international competitiveness were caused in part by lack of understanding about the importance of semiconductors for digitalization, decarbonization and economic security, Saito said.
“It’s no exaggeration to say that chips are the foundation for this country’s industries and those of the world,” he said.
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