Prime Minister Fumio Kishida said Wednesday that new legislation will be introduced soon to support domestic mass production of next-generation semiconductors and related research and development projects.
With the legislation, Kishida apparently hopes to help Rapidus, which aims to mass-produce next-generation chips. The government is considering providing guarantees of loans extended by private organizations.
"Domestic investment in the semiconductor field needs to be expanded continuously," Kishida told reporters after inspecting Rapidus' new plant under construction in the city of Chitose, Hokkaido.
On the proposed legislation, he said, "Japan will make investment for mass production and support research and development on a large scale with a plan over multiple fiscal years."
The government thinks it is important to reinforce supply chains for semiconductors from the perspective of economic security. Japan has decided to provide up to ¥920 billion ($6.023 billion) to Rapidus.
The Tokyo-based company aims to start mass production of chips with a circuit line width of 2 nanometers in 2027.
But it faces difficulty securing enough investment, estimated to reach about ¥5 trillion. So far, it has garnered only ¥7.3 billion from private-sector entities, including Toyota Motor and NTT.
The envisioned legislation is expected to encourage private organizations to make investment.
Kishida said that stable and decarbonized power sources will be important for the mass production, promising to take steps to help secure power sources.
"I expect that the chip and other digital related industries will gather in Hokkaido, with Rapidus at the center. The government will give aid," Kishida said, showing an eagerness to support local infrastructure improvements.