70 billion yen will Be Invested By Japan In A New Chip Company

Japan announced on Friday that it will invest up to $500 million, or 70 billion yen, in a new semiconductor company that will be run by technology companies like NEC Corp. and Sony Group Corp. as it works to rebuild and re-establish itself as the top producer of cutting-edge chips.

Semiconductors will be essential in the development of technologies and developments including the digital industry, artificial intelligence, and healthcare, according to Yasutoshi Nishimura, Minister of Economy, Trade, and Industry. He stated that the brand-new chip business, Rapidus, would begin producing chips in the second half of this century. Japan is worried that China would try to annex Taiwan, a major location for the production of advanced chips.

As part of this, the Japanese government is providing financial assistance to foreign chipmakers to entice them to establish manufacturing facilities in Japan, including 400 billion to assist TSMC, the world's top logic chip manufacturer, in constructing a facility in Kumamoto Prefecture, which will supply semiconductors to Sony and auto parts manufacturer Denso Corp.

In economies all across the world, semiconductors are becoming more and more crucial. Japan has long been a producer and significant exporter of semiconductor devices, but the current global chip shortage has highlighted the need for the nation to step up efforts to safeguard supply chains and improve production processes.

Semiconductors are widely used in vital technological items like cellphones, computers, and automobiles. As a result, the industry is seen as crucial to economic success and has even raised national security concerns in Japan.