The Japanese government plans to contribute 100 billion yen ($635 million) to local chipmaker Rapidus in the second half of 2025, according to Kyodo News.

Capital participation from existing and new shareholders is expected to total around 100 billion yen, with the Japanese government making a contribution of the same size.

Rapidus plans to use the capital as additional funds for the purchase of extreme ultraviolet (EUV) lithography equipment, etc., which will be required for mass production starting in 2027.