Japan approves $3.9 billion in subsidies for chipmaker Rapidus

Japan, in a bid to strengthen and improve its chip manufacturing hub, has approved $3.9 billion in subsidies for Rapidus Corp., one of the best semiconductor manufacturers in the country.

This funding consists of $352 million for advanced packaging, which is becoming crucial for boosting chip performance, and $3.5 billion for the purchase of chip manufacturing equipment and the development of advanced chip-making processes. Rapidus has received a total amount of $6 billion in subsidies, as it had been a previous beneficiary of $2.1 billion.

These funds are part of Japan's drive to ensure that the company can mass produce chips on the northern island of Hokkaido in collaboration with IBM and IMEC starting in 2027 and compete favourably with leaders Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co.