Japan funds domestic chip drive

Japan has approved another ¥631.5 billion for Rapidus, deepening its bet that advanced chips should be designed and made at home. (usnews.com) The new subsidy was announced by Japan’s industry ministry on April 11 and is aimed at speeding research and development at Rapidus, the chipmaker targeting mass production of 2-nanometer semiconductors in fiscal 2027. Reuters reported the latest package lifts Rapidus’ cumulative research support to ¥2.354 trillion. (usnews.com) Jiji Press said the money will be used mainly to refine prototypes at Rapidus as it works toward 2-nanometer output from its Hokkaido project. It put cumulative state support since fiscal 2022 at up to ¥2.454 trillion. (japannews.yomiuri.co.jp) A semiconductor is the tiny switch network inside phones, cars and data centers, and “2-nanometer” refers to one of the most advanced manufacturing generations now being pursued. Rapidus says it is building that process with technology and packaging help from International Business Machines and research support from imec. (rapidus.inc) (newsroom.ibm.com) Rapidus started prototyping 2-nanometer gate-all-around transistors in July 2025 and said the first prototype wafers had begun showing electrical characteristics. The company has presented that milestone as part of its path to 2027 volume production. (rapidus.inc) The push is not only about one factory. Japan is also trying to build domestic artificial intelligence models that would run on local infrastructure for Japanese companies and public institutions. (japannews.yomiuri.co.jp) The Yomiuri Shimbun reported on April 13 that a new company has been established with backing from SoftBank, NEC, Honda and Sony Group to develop home-grown foundation models. It said SoftBank and NEC would handle model development, while Honda and Sony would apply the systems in cars, robots, games and semiconductors. (japannews.yomiuri.co.jp) That venture plans to recruit about 100 artificial intelligence engineers and seek support from the New Energy and Industrial Technology Development Organization, a government research agency. Outside reports on the project say Japan has set aside up to ¥1 trillion over five years for domestic artificial intelligence development programs. (letsdatascience.com) (nedo.go.jp) Japan’s chip strategy has also included support for Taiwan Semiconductor Manufacturing Company’s expansion in Kumamoto, where Reuters reported a second plant is expected to produce 3-nanometer wafers in 2028. That leaves Tokyo backing both foreign-led manufacturing on Japanese soil and a domestic champion trying to reach the frontier on its own. (msn.com) The immediate test is execution: Rapidus still has to turn prototypes into paying production, and the new artificial intelligence venture still has to build models companies will use. Japan is now committing public money on both fronts at the same time. (bloomberg.com) (japannews.yomiuri.co.jp)