Japan’s government earmarked JPY590 billion ($3.9 billion) to support Rapidus Corp’s aims to mass produce 2nm logic chips, adding to previous subsidies allocated to Taiwan Semiconductor Manufacturing Co (TSMC) and Micron Technology, Bloomberg reported.

The government is investing aggressively to revive the country’s chip sector, amid rising trade tension with China and supply chain disruptions, with the government offering some JPY4 trillion in support to the semiconductor sector over the past three years.

The news agency wrote Rapidus had already been allocated billions of yen in public funds to manufacture chips in Hokkaido, northern Japan.

In late 2022, Rapidus and IBM set up a joint partnership to develop advanced semiconductors to be produced in a new fab in Japan,

The Japanese government recently allocated JPY45 billion to NTT to work with Intel and SK Hynix to develop and mass-produce next-generation chips using optical technology.

TSMC and Sony are investing around JPY800 billion into set up a chip factory in the country, with mass production scheduled to start this year.

Micron Technology secured subsidies of up to JPY192 billion from the government to build a JPY700 billion chip production facility in Hiroshima.