Japan is investing almost half a billion US dollars to beef up semiconductor development and production in a “last chance” attempt to keep its position as a major player on the global technology stage, the government said yesterday.
The new company, Rapidus, which means “quick” in Latin, will work on developing next-generation, or “post-5G,” semiconductors, the Japanese Ministry of Economy Trade and Industry said.
These advanced chips would be used in smart gadgets and smart cities with high-speed sensors and transmission. The components have to be extremely thin — a fraction of a hair’s breadth.
Photo: EPA-EFE
US COOPERATION
The ￥70 billion (US$495 million) effort would involve working closely with major Japan ally — the US — to bring together “the best and the brightest” from both nations, the ministry said in a statement.
Japan has long prided itself on being a technological powerhouse, including in chip production, but the ministry yesterday said that the nation had fallen 10 years behind the global competition, including Taiwan, the US, South Korea and some European nations.
Now was “Japan’s last chance” to remain a player in the sector, it said.
The COVID-19 lockdowns in China have brought to light Japan’s dependence on other nations for computer chips and other key components. Analysts say the uncertain future of US-China relations, which could put supplies from China at risk, adds to the growing concerns.
However, the change will take time. Japan is aiming for mass production of the chips by the late 2020s, or within several years, the ministry said.
INVESTORS
Those taking part in Rapidus are automaker Toyota Motor Corp, electronics makers Sony Group Corp and NEC Corp, along with Softbank Corp, Nippon Telegraph and Telephone Corp, Denso Corp and Kioxia.
Each company is investing ￥ 1 billion, in addition to the Japanese government subsidies. An eighth company, MUFG Bank, is investing ￥ 300 million.
Next-generation chips are expected to be crucial for artificial-intelligence and automated driving systems. Investing in such technology would lead to jobs and growth, the Japanese government said.
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