The Japanese government will provide 250 billion yen (approximately $1.6 billion) in new funding to chip manufacturer Rapidus.

This new capital will be made available over the next two fiscal years, moving Japan closer to its goal of offering a total of 3 trillion yen in support. The funding is intended to assist Rapidus in achieving mass production of cutting-edge 2-nanometer logic chips and potentially challenge industry leader Taiwan Semiconductor Manufacturing.

Tomoshige Nambu, an official from Japan's Ministry of Economy, Trade and Industry, stated on Friday that under the new arrangement, the government will initially hold only about 10% of Rapidus's voting shares, along with a majority of non-voting shares.

However, should the company face financial difficulties, the government retains the right to convert these shares into voting shares to gain a controlling stake. Nambu also indicated that the government will acquire a "golden share," granting it ultimate veto power over significant corporate changes.