Japan Considers Additional Investment of KRW 2.1 Trillion in Rapidus by 2029

The Japanese government is reportedly considering making an additional investment of 250 billion yen (approx. KRW 2.1299 trillion) in Rapidus, a company it is fostering as a core pillar of its semiconductor foundry competitiveness, according to outlets such as the Yomiuri Shimbun.

The Ministry of Economy, Trade and Industry announced yesterday (October 19) that it is reviewing plans to provide an additional 250 billion yen to Rapidus, consisting of 150 billion yen (approx. KRW 1.2779 trillion) in 2028 and 100 billion yen (approx. KRW 852 billion) in 2029.

The Japanese government has already invested 250 billion yen in the company and plans to invest another 150 billion yen next fiscal year, bringing the total government investment to 650 billion yen (approx. KRW 5.5377 trillion).

The Japanese government is pouring efforts into nurturing Rapidus with the goal of domestic production of next-generation semiconductors.

Rapidus aims to begin mass production of 2-nanometer (one billionth of a meter) advanced semiconductors at its Chiyose plant in Hokkaido starting next year, and envisions an initial public offering (IPO) in 2031.

The company plans to secure 2 trillion yen (approx. KRW 17.04 trillion) in bank loans for production line expansion, which requires maintaining a certain ratio of equity capital.

The Fiscal System Council of the Ministry of Finance, which received a report from the Ministry of Economy, Trade and Industry yesterday regarding the review of additional investment, stated, "It is important to continuously verify profitability.

It is necessary to confirm policy necessity and profitability and discuss whether to make industrial investments every year."

(Photo: Capture from Rapidus official website)
※ Please note: This article was translated by AI and may contain errors.