Japan Allocates Over $900 Million More to Support Chip Startup Rapidus

On August 21, the Japanese government will allocate an additional 150 billion yen (approximately $944 million) to support chip startup Rapidus, increasing spending in a bid to compete with companies like TSMC. According to a person familiar with the matter, Japan's Ministry of Economy, Trade and Industry will seek more funding for this domestic foundry chipmaker in the fiscal 2027 budget. The government-backed joint venture, established in 2022, aims to manufacture cutting-edge 2-nanometer chips by 2027 and help Japan reduce its reliance on TSMC. Policymakers view Rapidus's success and technological independence in AI, robotics, and quantum computing as critical to national security.