Japanese state-backed microchip company Rapidus, whose mission is to boost the country's competitiveness in the advanced semiconductor sector, is considering building its first manufacturing facility in Hokkaido, northern Japan, TV Tokyo reported. Rapidus could formally decide on a site for the new plant as early as the end of February, with Chitose, a city of about 100,000 people in southwestern Hokkaido, a possible site, the company said.
Japan has said it will invest 70 billion yen ($525 million) in Rapidus, a joint venture led by technology companies such as Sony Corp. and NEC Corp. Rapidus told Reuters earlier this month that it needs about 7 trillion yen ($54 billion) to start mass production of advanced logic chips around 2027. The plan could be Japan's last best chance to revive its aging semiconductor industry as it and the U.S. put their old industrial rivalry on hold to take on China amid growing geopolitical tensions. "In the past, the U.S. has hindered the development of Japan's chip industry. Now we have the support of the United States," Tetsuro Higashi said in an interview. Japan and the United States fear that friction with China could lead to a shortage of semiconductors, which could threaten economic growth. Rapidus announced in December that it was working with IBM to develop and produce two-nanometer chips after Japan and the United States reached an agreement on semiconductor technology cooperation. To cover the costs of building the plant and buying production equipment, Rapidus needs continued investment from the Japanese government, which announced in December that it was providing 70 billion yen ($544 million) in initial funding. But Higashi said the eight companies with small stakes in Rapidus, including Toyota Motor Corp. and Sony Group Inc., are unlikely to come up with any money soon.
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