Japan Pours $16B Into Longshot Chip Startup

Japan has approved an additional $4 billion in subsidies for Rapidus Corp., bringing total government support to $16.3 billion by March 2027. The funding aims to accelerate the startup's entry into AI chipmaking and secure early clients like Fujitsu. Rapidus is targeting production of cutting-edge 2-nanometer chips by 2027, with its Hokkaido foundry cleared by an external review committee. Tokyo views the project as vital to reducing dependence on TSMC and strengthening Japan's technological security in AI, robotics, and quantum computing.