Japan Plans To Provide Additional Funds Of IDR 33.8 Trillion For Rapidus Semiconductor Factory Construction In Hokkaido

Japanese government-backed chip manufacturer, Rapidus. (photo: twitter @Dragonetti0311)

JAKARTA - Japan's industry ministry is finalizing plans to provide an additional 300 billion yen (Rp 33.8 trillion) in funding to state-backed chipmaker Rapidus. It is being used to build a semiconductor factory on the northern island of Hokkaido as local newspapers reported on Saturday, April 8.

Rapidus, which in February chose Chitose, near Sapporo, as the site for its advanced two-nanometer chip factory, previously secured 70 billion yen in initial government funding.

According to the Hokkaido Shimbun newspaper citing unidentified sources, the additional funds will be used to help Rapidus build a prototype line slated for launch in 2025.

Rapidus chairman, Tetsuro Higashi, told Reuters in February that the company would need about 7 trillion yen of mostly tax money to start producing high-end logic chips in around 2027, with backing from American chip giant IBM Corp (IBM.N).

The Japanese government also offered up to 476 billion yen in subsidies to the Taiwan Semiconductor Manufacturing Co (TSMC) factory in Kyushu, where Sony Group Corp and Denso Corp each have a minority stake.