Honda Invests in Rapidus to Secure Chip Supply for Autonomous Vehicles

Honda Motor Co. is joining Japan''s semiconductor revival with an investment in Rapidus Corp., a Tokyo-based chipmaker central to the nation''s strategy of reclaiming leadership in advanced semiconductor production. The MOVE mirrors similar commitments from Toyota and Sony, forming a coalition of Japanese industrial giants betting on domestic chip resilience.

Rapidus plans to mass-produce cutting-edge 2-nanometer chips by 2027 at its Hokkaido facility—a technological leap that could redefine automotive computing power. Japan''s government is backing the venture with 1.7 trillion yen ($11.8 billion), marking the country''s most significant industrial policy push since its 1970s semiconductor dominance.

The investment reflects a broader industry pivot. Where automakers once prioritized cost-efficient global supply chains, they now seek control over mission-critical components. Advanced chips have become the new oil—essential fuel for autonomous driving systems and next-generation vehicle technology.