This Startup Is Using Billions of Dollars to Build Japan’s Own TSMC

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This Startup Is Using Billions of Dollars to Build Japan’s Own TSMC
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Japan’s government-backed Rapidus Corp. is lobbying chipmakers, their suppliers and research institutions to set up shop on the island of Hokkaido in a bid to make the remote region a center of semiconductor innovation within a decade.

The 13-month-old startup’s goal to make cutting-edge chips from scratch is part of a broader design to build a Silicon Valley-like ecosystem. Rapidus envisions a chipmaking cluster spanning coast to coast, with easy access to multiple ports, according to Chief Executive Officer Atsuyoshi Koike.

Koike is inviting manufacturers throughout the supply chain to invest in Japan’s northernmost prefecture of Hokkaido, where Rapidus is building a factory in preparation for pilot line operations in 2025. Companies need to work together more effectively toward a common goal, the chip veteran said. Working separately “is not the right way,” he said.

Japan has allocated $2.4 billion for the venture, with officials saying they’re prepared to provide a comparable budget every year. Kishida has pledged “utmost support” to Rapidus to keep the venture on track.

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