Japan offers $301 mn support for semiconductor research

Semiconductor research in Japan: On Friday, Japan's trade ministry announced plans to offer backing worth up to 45 billion yen ($301 million) to an organisation focused on cutting-edge semiconductor technology research. This initiative includes support for the chip foundry venture Rapidus.

The Leading-edge Semiconductor Technology Center (LSTC), chaired by Rapidus Chairman Tetsuro Higashi, comprises various research institutions and universities.

This support aligns with Japan's efforts to bolster its chip manufacturing capabilities. Rapidus, supported by substantial subsidies, aims to commence mass production of 2-nanometer logic chips in Hokkaido, aiming to compete with industry leaders like Taiwan's TSMC.

In a further vote of confidence in Japan's manufacturing capabilities, TSMC recently announced plans to construct a second fab in Japan, set to commence operations by 2027.

(With Reuters inputs)