April 3, 2024

The Kishida government on April 2 decided to provide 590 billion yen in additional financial support to semiconductor maker Rapidus. Combined with the previous support, the amount of government subsidies to the company reached one trillion yen. The government’s stance to subsidize Rapidus coincides with its policy to turn Japan into a war-capable nation.

The Kishida administration regards cutting-edge 2-nanometer chips under development by Rapidus as the linchpin to technology collaboration under the Japan-U.S. Alliance.

Officials of Japan’s Economy and Industry Ministry and the U.S. Department of Defense in 2022 discussed the use of Rapidus products in U.S. military equipment. Rapidus President Koike Atsuyoshi in October 2023 expressed his hope that his company will contribute to the capability of U.S. forces.

The Kishida government in October 2023 released an action plan on economic security aimed at enhancing technological and industrial infrastructure. Under this plan, the government expressed its intent to develop AI and semiconductors jointly with the U.S. and secure their supply chains, taking for example a possible application of these leading innovative technologies to advanced weapons like hypersonic weapons.

The U.S. government in its National Defense Industry Strategy (NDIS), which was released in January 2024, cited the creation of “resilient supply chains” for goods and technologies including semiconductors as one of major strategic goals, and stated that it will encourage its allies and partners to participate in the development of such supply chains.

Past related article:
> Japanese cutting-edge chips are likely to be used in US weapons: Industry Ministry [September 30, 2023]