"2027 Yangsan Launch" Japanese Government Provides Additional 1.8 Trillion Won Support to Semiconductor Company Rapidus

The Japanese government announced plans to invest an additional 20 billion yen (1.8 trillion won) next year for the semiconductor company Rapidus. This move aims to actively support the goal of starting mass production in 2027 and intends to use this support as a catalyst for private investment or loans.

On the 20th, Nihon Keizai Shimbun (Nikkei) reported that the Ministry of Economy, Trade and Industry presented this plan to ruling party lawmakers. A total of 5 trillion yen (45 trillion won) in funding is required until the start of mass production, and the Japanese government has so far decided to provide subsidies amounting to 920 billion yen (8.2 trillion won). Nikkei stated, "It seems the focus is now on securing the remaining 4 trillion yen (36 trillion won) in funds."

Reuters Yonhap News

The Japanese government plans to submit a bill to next year's parliament that would allow government-related agencies to provide debt guarantees or investments in Rapidus. Nikkei also reported that this policy will be included in upcoming economic measures under discussion soon.

The plan reportedly includes provisions for "in-kind investment," where facilities such as factories built with government funds would be exchanged for shares in Rapidus, based on the target date of October 2027, when mass production is expected to begin.

Rapidus was established in 2022 by eight major Japanese companies: Toyota, Kioxia, Sony, NTT, SoftBank, NEC, Denso, and Mitsubishi UFJ Bank. It has been constructing a factory in Chitose, Hokkaido since last year. The company plans to produce 2nm semiconductors starting in April next year and aims to begin mass production in 2027. However, there is a prevailing opinion that the 2027 semiconductor mass production plan is uncertain due to insufficient secured funding and related technology.