Japan is spending billions of dollars to boost AI chip production.

The Japanese government has approved an additional 631.5 billion yen (approximately $4 billion) in subsidies to encourage startup Rapidus Corp. to join the fierce competition in the artificial intelligence (AI) chip manufacturing sector, thereby increasing financial support for a key but challenging project.

This funding will be used to finance Rapidus's operations in service of the IT company Fujitsu Ltd. - one of the first customers that the Japanese government expects will help the project become operational.

According to Japan's Ministry of Economy , Trade and Industry, the total amount of government support and investment for this startup will increase to 2.6 trillion yen (US$16.3 billion) by the end of the fiscal year ending March 2027. The ministry also said that an independent committee had inspected Rapidus's factory in Hokkaido and confirmed the project's technological progress.

Rapidus, a newly established company, began developing wafers using 2-nanometer technology in 2025, aiming for mass production of advanced chips by 2027. Its long-term goal is to help Japan reduce its dependence on TSMC, the semiconductor giant from Taiwan (China).

Policymakers view Rapidus's success, as well as technological self-reliance in areas such as AI, robotics, and quantum computing, as crucial to national security.

However, compared to TSMC, this chip manufacturer is still lagging behind significantly. TSMC began mass production of 2nm chips in 2025 and is currently a major partner of large technology corporations such as Nvidia Corp. and Apple Inc.

Besides technological barriers, Rapidus – like many manufacturers in Japan that lack resources – is also under pressure from rising energy and raw material costs due to the conflict in the Middle East.

The Japanese government is placing high hopes on Rapidus amid surging global demand for AI chips, which is causing shortages of memory and other semiconductors, thereby posing a potential risk to economic stability.

According to the plan, Rapidus aims to launch its initial public offering (IPO) around fiscal year 2031, while also targeting the raising of approximately 3 trillion yen from the private sector, partly through government loan guarantees.

The company has also established an analysis facility in Chitose, Hokkaido, to test and evaluate chips in order to improve the product acceptance rate, and has begun operating a center for developing post-processing procedures.

(VNA/Vietnam+)

Source: https://www.vietnamplus.vn/nhat-ban-chi-hang-ty-usd-nham-thuc-day-san-xuat-chip-ai-post1104314.vnp