The Japanese government is reportedly considering an additional investment in Rapidus, a company being developed as a semiconductor foundry.
According to Yonhap News on October 20, the Ministry of Economy, Trade and Industry revealed that it is reviewing a plan to invest an additional 250 billion yen (approximately $1.9 billion) in Rapidus, with 150 billion yen (about $1.3 billion) planned for 2028 and 100 billion yen (around $850 million) for 2029.
The government has already invested 250 billion yen in the company and plans to contribute another 150 billion yen next year, bringing the total government investment to 650 billion yen (approximately $5 billion).
Rapidus aims to produce next-generation semiconductors in Japan. The company plans to start manufacturing 2-nanometer chips at its Hokkaido facility next year and is also considering an initial public offering (IPO) in 2031.
To enhance its production lines, Rapidus plans to secure a bank loan of 2 trillion yen (about $17.4 billion), which will require a certain ratio of equity capital.
The Ministry of Finance's Fiscal System Council, which received a report on the additional investment review from the Ministry of Economy, Trade and Industry, emphasized the importance of continuously verifying profitability. They stated, "It is necessary to discuss whether to invest in the industry annually by confirming the policy necessity and profitability."
* This article has been translated by AI.
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