Japan Earmarks Another $5.4 Billion for Chip Startup Rapidus

Japan is preparing as much as ¥802.5 billion ($5.4 billion) in additional aid for chip startup Rapidus Corp., a move that reflects Tokyo’s growing resolve to secure semiconductors during a time of heightened US-China tensions.

That brings the total amount of public money earmarked for the country’s effort to build an advanced chip contractor to a maximum ¥1.72 trillion, plus another ¥100 billion that’s been proposed. Japan’s Economy Ministry is also pushing for debt guarantees to encourage more private sector investment into the fledgling company.