Japan donates $300 million to a semiconductor development institute

Japan donates $300 million to a semiconductor development institute

The assistance is provided at a time when Japan is working hard to revive its semiconductor industry.

Japan will provide relief of up to 45 billion yen ($301 million).

The Trade Ministry of Japan said on Friday that it will fund research into advanced semiconductor technology up to 45 billion yen ($301 million) for an entity that includes chip foundry Rapidus.

Universities and research centers make up the Leading-Edge Semiconductor Technology Center (LSTC), which is led by Tetsuro Higashi, President of Rapidus.

The assistance is provided at a time when Japan is working hard to revive its semiconductor industry.

With the support of billions of dollars in subsidies, Rapidus wants to compete with industry leaders like Taiwan's TSMC by mass-producing 2-nanometer logic circuits in Hokkaido.

This week, TSMC showed its faith in Japan's manufacturing sector by announcing that it would construct a second factory there, with plans to start operations by 2027.