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Japan eyes 'golden share' as condition for aid to Rapidus
Japan's industry ministry plans to hold 'golden shares' in companies like Rapidus to provide over ¥1.7 trillion in aid for domestic semiconductor production. This arrangement includes conditions for private funding and partial debt guarantees, with applications for aid expected to open by late 2023.
Key points
- The industry ministry aims to support Rapidus and similar companies in domestic semiconductor production.
- The government will hold a veto-wielding 'golden share' in exchange for financial aid.
- Eligible companies must produce semiconductors with a circuit width of up to 2 nanometers by the late 2020s.
- Companies must also seek private sector funding and can only receive partial debt guarantees to avoid over-reliance on government aid.
- The government has allocated over ¥1.7 trillion for Rapidus and plans to periodically sell shares based on market conditions.
Why it matters
- The move aligns with global semiconductor supply chain strategies amid increased competition from countries like the U.S. and China.
- Similar initiatives are seen in the U.S. and European Union, where government funding is linked to technology ownership and strategic industries.
- The semiconductor market trends are focusing on smaller process nodes, pushing companies to innovate in production capabilities.
Japan's strategic move with golden shares reinforces its commitment to semiconductor self-sufficiency while fostering public-private partnerships, potentially revitalizing its tech industry amidst global competition.