Rapidus was established in November 2022 with an investment of over $500 million from the Japanese government and eight Japanese technology and automotive firms, including SoftBank, Sony, and NTT. The Japanese Prime Minister, Shigeru Ishiba, did not provide details on how the venture would be financed but confirmed that the government would not issue deficit-covering bonds or raise taxes to finance the $65 billion plan.
Key takeaways:
- The Japanese government plans to invest around $65 billion to support the country's semiconductor and AI industries.
- The initiative is expected to generate approximately $104 billion in public and private investment by the end of the decade.
- The funding will specifically target state-backed chip foundry Rapidus and other AI chip suppliers.
- Japan's government has stated it will not raise taxes or issue deficit-covering bonds to finance the $65 billion plan.