AsianFin -- Japan is earmarking an additional ¥1.5 trillion ($9.9 billion) to enhance its semiconductor and artificial intelligence initiatives, including the ambitious moonshot project Rapidus Corp., a next-generation foundry venture.

The government's supplementary budget for the fiscal year ending in March includes ¥1.05 trillion for the development and research of advanced technologies such as next-generation chips and quantum computers. Additionally, ¥471.4 billion is allocated to support domestic production of advanced semiconductors. However, the Ministry of Economy, Trade, and Industry has not yet determined how much of this funding will go specifically to Rapidus.

As home to some of the world’s largest semiconductor materials and equipment producers, Japan is striving to stay competitive in the global race for cutting-edge technologies, led by China and the US. Policymakers emphasize that semiconductor advancements are crucial for both the development of superior artificial intelligence and national security.