Next-generation semiconductors will be developed and mass produced by Rapidus. 
The epidemic has contributed to a global memory chip scarcity. 
The US recently implemented new regulations.

Hirokazu Matsuno, the top cabinet secretary, announced on Friday that the Japanese government will invest $500 million in a new project to create and develop next-generation microchips. According to sources in Japanese media, eight big corporations, including Sony, SoftBank, Toyota, and telecoms giant NTT, have teamed together for the project.

According to prominent media outlets including the Mainichi Shimbun and national broadcaster NHK, the new company Rapidus will create and mass-produce next-generation semiconductors by 2027.

Governments are frantically trying to secure supplies of memory chips as carmakers and computer industries are being compelled to reduce production as a result of the pandemic.

According to the industry ministry, each company has put in about JPY 1 billion (approximately Rs. 57 crore), with MUFG Bank putting in JPY 300 million (about Rs. 17 crore). Later on Friday, the investor corporations are anticipated to make the project official.

Without going into further detail, Matsuno stated that the government would give Rapidus JPY 70 billion (approximately Rs. 4,000 crore) to oversee a project for next-generation semiconductor research and development. At a routine briefing, Matsuno stated that semiconductors are a crucial technology that supports digitalization and decarbonization.

We believe that these actions will make the semiconductor industry in our country more competitive. In reaction to the chip shortage as geopolitics become more unstable, particularly with regard to Taiwan, which has a substantial chip-producing capability, calls for the government and businesses to secure semiconductor supply have been made for Japan's economic security.

Recent U.S. policy changes to restrict China's access to advanced semiconductors with military applications have devalued the global chip industry by billions. According to government sources, the German economy ministry has also advised against selling a chip factory to a Chinese company because it poses a security risk.