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Introduction: Government Tightens Grip to Safeguard High-Tech Sovereignty
As the global race for semiconductor supremacy intensifies, Japan is stepping up its efforts to protect its strategic interests. In a significant move, the Ministry of Economy, Trade and Industry (METI) has announced plans to acquire a golden share in Rapidusâa state-backed semiconductor company tasked with mass-producing next-generation chips in Japan. This rare form of shareholding will give the government veto power over critical corporate decisions, reinforcing Japanâs commitment to economic security amid mounting concerns over foreign takeovers and technology leakage.
This initiative underscores Tokyoâs broader ambition to revive its semiconductor sector, which was once a world leader but lost dominance to overseas rivals. With national security and supply chain resilience now top priorities, the Japanese government is taking decisive action to ensure that its cutting-edge technologies remain under domestic control.
the Original
On July 4th, Japanâs Ministry of Economy, Trade and Industry (METI) unveiled conditions for its investment in Rapidus, the domestic startup tasked with manufacturing advanced semiconductors. Central to these conditions is the issuance of a golden share, which grants the government veto power over crucial corporate decisions. This mechanism is designed to guard against economic security threats, such as foreign acquisitions.
The specifics will be codified in a revision of the Act on the Promotion of Information Processing, set to come into effect in mid-August. Though the law is structured to allow investment through the Information-technology Promotion Agency (IPA), it essentially targets Rapidus as a sole recipient. METI has already secured ÂĽ100 billion in its 2025 budget to fund this initiative.
Before any actual investment is made, authorities will assess Rapidusâs financial stability, its ability to secure private-sector funding, and the robustness of its measures to prevent sensitive technology leaks. The amendment also allows the government to provide guarantees for private loans, further deepening its role in backing semiconductor development as a national strategy.
The concept of golden shares isnât new in Japan. The government holds such shares in major entities like INPEX and retains significant equity in companies like NTT and Japan Post to maintain control over vital sectors. This approach reflects global trends, with similar arrangements seen in the U.S.ânotably in the Japan SteelâUS Steel acquisition, where national security provisions gave U.S. authorities oversight over the deal’s strategic aspects.
Rapidus itself is a consortium formed by eight leading Japanese firms, including Toyota, NTT, and Sony, aiming to domestically produce next-gen chips for applications such as AI and supercomputers by the late 2020s. The government, through subsidies and now direct governance influence, is supporting its growth to secure Japanâs place in the global semiconductor ecosystem.
What Undercode Say:
Japanâs decision to grant itself a golden share in Rapidus is a landmark in its tech-industrial policy, signaling a hybrid approach where state capitalism converges with national security imperatives. This model recognizes that semiconductors are no longer just an economic assetâthey are a geopolitical weapon.
Why this matters:
Economic Resilience: By retaining veto rights, Japan ensures that Rapidus remains under domestic influence, avoiding hostile takeovers or silent acquisitions by foreign actors, especially from geopolitical rivals.
Technology Sovereignty: Golden shares deter intellectual property theft and the outflow of critical technologiesâan ever-growing concern in AI, quantum computing, and advanced chip fabrication.
Strategic Alignment: The integration of industrial policy with security protocols aligns Japan more closely with Western allies like the U.S., who also guard semiconductor capabilities as critical infrastructure.
Contextually, this move echoes recent global interventionsâsuch as the U.S. CHIPS Act and the EUâs IPCEI frameworkâshowing a global pivot toward strategic autonomy in tech. But Japanâs golden share mechanism is particularly surgical: it allows the government to act without full ownership, making it less politically controversial while retaining maximum strategic influence.
However, this raises broader questions:
Investor Confidence: Will private investors view golden shares as a deterrent to autonomy or as assurance of state support?
Corporate Governance: How will Rapidus balance innovation agility with bureaucratic oversight?
Export Competitiveness: With heavy state involvement, can Rapidus stay nimble enough to compete with giants like TSMC or Samsung?
Still, Rapidus is being positioned not as a commercial chip juggernaut, but as a national capability platformâa way for Japan to regain lost ground and build domestic capacity in a high-stakes industry.
The fact that eight major firms (Toyota, Sony, NTT, etc.) have joined forces underlines the importance of this initiative. It’s not just a tech project; itâs an industrial alliance anchored by state support.
is Japan staking its claim in the future of silicon.
đ Fact Checker Results
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The METI is indeed introducing a golden share system to Rapidus under the revised Information Processing Promotion Act.
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Rapidus was founded by a consortium of major Japanese firms to produce advanced chips domestically.
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Similar golden share frameworks already exist in Japan with companies like INPEX and NTT.
đ Prediction
By the late 2020s, Rapidus is likely to become a cornerstone in Japanâs high-tech revival strategy, serving as a national security asset as much as a business enterprise. Expect additional layers of policyâlike export controls, R\&D tax credits, and defense-tech integrationâto be woven into the companyâs roadmap. If successful, Rapidus could not only reduce Japanâs chip dependency on Taiwan and South Korea but also act as a counterbalance to Chinese semiconductor ambitions in Asia.
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Reported By: xtechnikkeicom_5d60c7095958a43824c33826
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