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Japan Earmarks $300 Million to Fire Up Chip Research

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Japan has allocated a substantial sum of up to 45 billion yen (approximately $300 million) to support a research group involved in the development of advanced chip technology. This initiative is part of a broader national effort to bolster the country’s chip manufacturing capabilities and advance its semiconductor technology. The funding will benefit the Leading-edge Semiconductor Technology Center (LSTC), which is chaired by Rapidus Chairman Tetsuro Higashi.

Rapidus, a chip foundry venture, aims to mass manufacture 2-nanometer logic chips in Hokkaido and compete with leading companies like TSMC. The investment is a significant step in Japan’s strategy to strengthen its position in the global semiconductor industry, as the government also seeks to provide substantial budget funding to support advanced semiconductor designs and generative AI. This move reflects Japan’s commitment to revitalizing its chip manufacturing base and fostering cutting-edge semiconductor technology.

This investment is part of a larger trend, as Japan’s government is also seeking significant budget funding to support various areas, including more aid for companies like Taiwan Semiconductor Manufacturing Co. (TSMC) and the development of supercomputers for AI learning models.

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