Japan's industry minister announced Friday a strategy for domestic production of advanced chips through a new firm set up by eight leading Japanese companies, including Toyota Motor Corp. and Sony Group Corp., pledging to provide 70 billion yen ($494 million) in subsidies.

With international competition to secure next-generation semiconductors intensifying, the government aims to produce sub 2-nanometer chips domestically through a partnership with the eight companies by the late 2020s.

The recently established firm, named Rapidus, is expected to engage in research, development and manufacturing of the advanced chips to be used in quantum computers and artificial intelligence, which are considered important in terms of the country's economic security.

==Kyodo

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