TOKYO (Kyodo) -- The Japanese government said Friday it will invest 100 billion yen ($640 million) in chip venture Rapidus Corp., ramping up efforts to strengthen its economic security by strengthening a domestic semiconductor supply chain.

"It's a national project that we must make a success out of," trade minister Ryosei Akazawa said at a press conference after a business proposal submitted by the company was approved by the government.

A revised law on information technology promotion was enforced in August, implementing a framework for state engagement in the development of advanced chips.

The Ministry of Economy, Trade and Industry solicited requests for government support from semiconductor-related businesses between September and October, receiving just one application from Rapidus.

The move comes as competition to develop advanced semiconductors intensifies across the globe, with the growth of artificial intelligence increasing demand for fast and energy-efficient chips.

The company was established in 2022 with investment from eight major Japanese companies, including Toyota Motor Corp. and Sony Group Corp.