Japanese Government Invests $16 Billion in AI Chip Development to Boost Technological Independence
The Japanese government has approved additional subsidies totaling 631.5 billion yen ($4 billion) to support the state-owned company Rapidus in its efforts to enter the artificial intelligence chip market. This funding is part of a larger investment strategy, bringing the total government spending and investment in Rapidus to 2.6 trillion yen ($16.3 billion) by the end of the fiscal year in March 2027. Rapidus, founded in 2022, aims to begin mass production of advanced chips using 2-nanometer technology in the second half of fiscal year 2027. The initiative is part of Japan's broader strategy to reduce dependence on foreign chip manufacturers like Taiwan Semiconductor Manufacturing Co. (TSMC) and establish itself as a leader in AI, robotics, and quantum computing technologies. 
