Japan to Push Rapidus to Hike Domestic Chip Output

The Japanese government said Friday it has become the largest shareholder in state-backed chipmaker Rapidus Corp., holding 11.5% of its voting rights in its latest push to establish a stable domestic supply of semiconductors, Kyodo News reported.

The investment brought the total public-private capital injection in the chip manufacturer to 267.6 billion yen. (Photo: IBM)

The government spent 100 billion yen ($640 million) for a 40% stake in Rapidus, including shares without voting rights that can be converted to seize majority control if the chipmaker’s business is in jeopardy.

The investment brought the total public-private capital injection in the chip manufacturer to 267.6 billion yen, with 32 other entities — including SoftBank Group Corp., Toyota Motor Corp., and Sony Group Corp. — also holding stakes.

“We are incredibly grateful that we have garnered more support than we had expected amid greater understanding of the need for our industry,” President Atsuyoshi Koike said at a press conference in Tokyo the same day.

Regarding customer acquisition, Rapidus said it is currently in discussions with more than 60 companies, most of them international firms, but declined to name them.