Honda to Invest in Rapidus for Semiconductor Procurement
Toyota Has Already Invested
Aims to Diversify Supply Chain
Japan's automaker Honda will invest in the domestic semiconductor company Rapidus, according to a report by the Nihon Keizai Shimbun (Nikkei) on June 11, 2025.
Honda plans to invest several billion yen (hundreds of millions of Korean won) in Rapidus by March next year.
Toyota Motor has already invested in Rapidus. With Honda's investment, Rapidus will be collaborating with both the first- and second-largest automakers in Japan.
Nikkei reported that Honda decided to invest in Rapidus to secure a stable supply of semiconductors.
In 2023, Honda agreed to collaborate with Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) company, in the semiconductor sector. However, concerns over geopolitical risks in Taiwan have led Honda to seek diversification of its supply chain.
Nikkei analyzed, "Rapidus has gained momentum in mass-producing cutting-edge semiconductors and attracting customers," and added, "Honda will participate as a new shareholder to support the domestic semiconductor production plan."
Rapidus was established in 2022 by eight leading Japanese companies, including Toyota, Kioxia, Sony, and NTT, to promote the localization of semiconductor production. The total investment from these companies amounts to only 7.3 billion yen (approximately 68.9 billion Korean won).
It is expected that Rapidus will need a total of 5 trillion yen (about 47 trillion Korean won) to mass-produce semiconductors as planned. The funds secured so far are less than 2 trillion yen (about 19 trillion Korean won).
Nikkei pointed out, "It is expected that a total of 200 billion yen will be injected into Rapidus from the government and private sector by March next year," but also noted, "There are still many challenges, such as mass production technology and securing customers, so it is too early to be optimistic."
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