Japan Bets $16 Billion to Propel Rapidus Into AI Chips
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Japan approved ¥631.5 billion ($4 billion) in additional subsidies to quicken Rapidus Corp. into the intensely competitive AI chipmaking arena, ramping up financial support for a signature project widely regarded as a long shot.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Japan approved ¥631.5 billion ($4 billion) in additional subsidies to quicken Rapidus Corp. into the intensely competitive AI chipmaking arena, ramping up financial support for a signature project widely regarded as a long shot.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The capital is intended to bankroll Rapidus’ work for IT firm Fujitsu Ltd., one of the initial clients that Tokyo hopes will get the signature endeavor off the ground. The new money raises the fees and investments that the government is injecting into the startup to ¥2.6 trillion ($16.3 billion) by the end of the current fiscal year to March 2027, the Economy Ministry said Saturday. An external committee inspected Rapidus’ foundry in Hokkaido in northern Japan, and signed off on its technological progress, the ministry said. Tokyo is offering financial support to Rapidus to help it secure customers, Japan’s Minister of Economy, Trade and Industry Ryosei Akazawa told reporters at a Rapidus event in Hokkaido on Saturday. The fledgling company aims to make cutting-edge 2-nanometer chips by 2027, a schedule Akazawa reaffirmed, and help Japan lower its reliance on industry leader Taiwan Semiconductor Manufacturing Co. Policymakers see Rapidus’ success and technological independence in AI, robotics and quantum computing as critical to the country’s security. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.The Japanese chipmaker remains far behind TSMC, which began 2nm volume production last year and is the go-to chipmaker for Nvidia Corp. and Apple Inc. In addition to technological hurdles, Rapidus — like other manufacturers in resource-poor Japan — are getting squeezed by rising costs for energy and material input during the conflict in the Middle East. Tokyo is counting on Rapidus at a time soaring demand for the chips critical to AI development is squeezing supplies of memory and other semiconductors around the world, threatening economic stability.Rapidus, which targets an initial public offering around fiscal 2031, aims to secure roughly ¥3 trillion in private-sector financing partly with the help of government loan guarantees, the ministry said in a statement. It has set up an analysis facility in Chitose, Hokkaido to test and diagnose Rapidus’ chips in an attempt to lift yields, and has also begun operations of a backend processes development center.—With assistance from Mayumi Negishi and Masatsugu Horie.(Adds more details in third paragraph.)Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.