Japan’s All-Out Semiconductor Gamble: Will Legislative Support Lead to Success?

[Anchor]

Japan, once a global semiconductor powerhouse in the 1980s, is going all-out to reclaim its former glory.

The government has even amended laws to directly invest in semiconductor companies and become a major shareholder, making a bold move. Tokyo correspondent Mun Junmo reports.

[Reporter]

A five-minute drive from New Chitose Airport leads to the Rapidus factory, which is currently undergoing expansion.

Just three years ago, this was empty land, but it has transformed rapidly since the site was selected.

Construction was completed in one year and seven months after the groundbreaking ceremony in 2023, and just three months later, the company succeeded in operating a prototype of a 2-nanometer semiconductor.

Considering that it usually takes more than three years to complete an advanced semiconductor plant, this is a record-breaking pace.

[Hashimoto Kiyoshi / Public Relations Manager, Rapidus: Japan is more than 20 years behind in advanced semiconductor technology. We are trying to catch up in one leap.]

The Japanese government has provided 2.3 trillion yen in research funding and even enacted the so-called "Rapidus Support Act," investing 250 billion yen directly to become the largest shareholder and support the fast-paced project.

[Takaichi Sanae / Minister of State for Special Missions (Last month, meeting with Rapidus executives): I intend to actively promote this to other countries, not just the U.K. and Italy, with a focus on our allies.]

Japanese companies with demand for semiconductors, such as Toyota and Sony, have also invested in equity, establishing a domestic ecosystem that will purchase the products once mass production is successful.

The project has also provided a justification for addressing regional depopulation.

Immediately after attracting the Rapidus plant, Chitose City recorded the highest land price increase rate in the country, enjoying an unprecedented boom.

Even now, construction sites for high-rise buildings can be easily found near Chitose Station.

Over the past two years, 184 apartment buildings with 2,400 units have been newly constructed, but this is insufficient to meet future demand.

[Mori Shuichi / Director of Next-Generation Semiconductor Hub Promotion Office, Chitose City: With 96 more companies requesting to move into Chitose, there is a possibility that real estate will become scarce again.]

To address power supply, the government plans to invest 1.8 trillion yen to build an undersea power transmission network between Hokkaido and the main island, and to restart the suspended Unit 3 of the Tomari Nuclear Power Plant.

Rapidus stated that once the mass production system is ready, it will make a bold move by setting the sales price of its advanced semiconductors to be equal to or lower than that of TSMC, the current market leader.

Whether Rapidus can prove its yield and quality are on par with competitors like TSMC and Samsung Electronics before mass production begins next year, and whether it can secure major clients like Nvidia, will likely determine the success or failure of the venture.

(Photo: Yonhap News)
(Reported by Han Cheol-min and Mun Hyun-jin | Video edited by Kim Jong-mi | Graphics by Jang Chae-woo)
※ Please note: This article was translated by AI and may contain errors.