Japan eyes further support for semiconductor firm Rapidus with new budget

Japan's Ministry of Economy, Trade and Industry (METI) is reportedly planning to allocate an additional 150 billion yen (approximately $1.1 billion USD) in its fiscal year 2027 budget. This proposed funding is intended to further support Rapidus, a domestic semiconductor manufacturing venture.

The new financial injection aims to solidify Rapidus's path toward commercialization, particularly as the company targets mass production of its 2-nanometer logic process technology by fiscal year 2027. This timeline is critical for the company's ambition to compete in the advanced semiconductor market.

This move signifies a continued governmental commitment to revitalizing Japan's chip industry. METI has previously provided substantial financial backing to Rapidus, underscoring the strategic importance placed on securing domestic capabilities in next-generation semiconductor manufacturing.

Rapidus has previously indicated plans to price its 2nm wafers starting around 3 million yen each, aiming for competitive pricing against established players like TSMC. The new budget allocation is expected to be crucial in enabling the company to achieve these production and market entry objectives.