Japan approves extra $3.9b in aid to chip startup Rapidus

Japan’s industry ministry approved subsidies of up to 590 billion yen ($3.9 billion) for chip foundry venture Rapidus to boost the country’s chip manufacturing base, according to Reuters on Tuesday.

The aid includes 53.5 billion yen for advanced packaging, crucial for chip performance. Rapidus plans to start mass production of cutting-edge chips in Hokkaido by 2027 in partnership with IBM and Imec.

This move comes as countries seek to secure chip supply chains amid global disruptions. Some industry experts are skeptical about Rapidus’s success compared to established players like TSMC.

(1 United States dollar = 151.64725 Japanese Yen)