Japan sets aside $65B for semiconductor stimulus

The Japanese government has pledged 65 billion dollars in subsidies and other incentives for the country’s semiconductor and AI industries. The funds, to be spent over the remainder of the decade, are part of Japan’s efforts to improve its economic security now that global semiconductor supply chains are under pressure. The stimulus comes on top of the previously allocated 13 billion dollars for the domestic semiconductor sector.

Rapidus is expected to be a major recipient of the government support. The foundry, which is being built from the ground with the help of Imec and IBM, is targeting pilot production of 2nm chips by 2025 and mass production by 2027. As such, it will be going head-to-head with TSMC, Samsung and Intel, although the latter two have been struggling lately.