(Bloomberg) -- Japan’s support for Rapidus Corp. won’t waver even if the government-backed venture has to delay its goal of mass producing advanced logic chips by 2027, according to the chairman of the ruling party’s group for semiconductors.
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Rapidus is on track to start a pilot line of its products in April 2025, moving steadily toward the mass production target, the Liberal Democratic Party’s Daishiro Yamagiwa said, citing feedback he’s received from the company and government officials.
“We’ve carried out our semiconductor strategy with determination and the Rapidus project is a core part of the strategy,” Yamagiwa said in an interview with Bloomberg News on Tuesday. Even if the target changes to 2028 from 2027, “that won’t matter to us,” he said.
Japan is engaged in a multibillion-dollar venture with Rapidus to develop a domestic manufacturer of next-generation semiconductors. The startup, backed by local industry leaders like Toyota Motor Corp. and Sony Group Corp., aims to deliver 2-nanometer chips within three years. It’s an ambitious plan to catch up to leaders Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., both of which intend to start 2nm production at scale next year.
Yamagiwa said he is fully aware of risks associated with the ambitious project, and ongoing concerns over its fate given how past government efforts to help the private sector failed to revive the nation’s once-renowned prowess in chipmaking.
“We will keep trying until we succeed, which is the only way for us to survive,” the 56-year old said. “This is a battle for our nation’s survival.”
The party will aim for a smooth passage of legislation in a parliamentary session next year that will enable the government to boost funding in new ways for chipmakers including Rapidus, Yamagiwa said.
“I’m not expecting opposition for this,” the former economic revitalization minister said, adding that chipmaking technology is crucial for the nation’s security and economy, and renewed government efforts have already helped some regional economies.
The LDP and its junior partner Komeito need support from opposition parties after losing their majority in October’s election. In November, Yamagiwa took over the chip czar post from Akira Amari, a LDP heavyweight who championed Tokyo’s renewed push for chips until he lost his parliamentary seat in the election.
Japan aims to give ¥10 trillion ($65 billion) of fresh public support for its semiconductor and artificial intelligence sectors by fiscal 2030. To start, Prime Minister Shigeru Ishiba has earmarked roughly ¥1.5 trillion in his economic stimulus package last month.