Toyota Fuels Japan's Chip Ambitions with New Investment in Rapidus
AInvestFriday, Oct 18, 2024 5:00 am ET
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Toyota Motor announced on October 18 that it plans to increase its investment in Rapidus, a Japanese semiconductor manufacturer. This decision aims to support Rapidus's goal of mass-producing next-generation semiconductors by 2027.

Rapidus had previously called on existing shareholders and banks for an additional capital infusion of approximately 100 billion yen (roughly $6.7 billion). The company has indicated a requirement of nearly 5 trillion yen to scale up production of 2nm process chips.

Toyota emphasized its support for Rapidus's vision to establish a cutting-edge semiconductor manufacturing base in Japan. This move aligns with other stakeholders considering additional investments, such as auto parts maker Denso Corp. Previously, companies like Sony Group and NEC Corporation have already decided to increase their investments in Rapidus.

Moreover, financial institutions, including Japan's Mitsubishi UFJ Bank along with three other banks, are expected to contribute up to 25 billion yen collectively. This influx of capital highlights the strategic importance of semiconductor advancements in Japan's industrial landscape.

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