TOKYO (Kyodo) -- The Japanese government said Friday it has become the largest shareholder in state-backed chipmaker Rapidus Corp., holding 11.5 percent of its voting rights in its latest push to establish a stable domestic supply of semiconductors.

The government spent 100 billion yen ($640 million) for a 40 percent stake in Rapidus, including shares without voting rights that can be converted to seize majority control if the chipmaker's business is in jeopardy.

The investment brought the total public-private capital injection in the chip manufacturer to 267.6 billion yen, with 32 other entities, including SoftBank Group Corp., Toyota Motor Corp. and Sony Group Corp., also holding stakes.

"We are incredibly grateful that we have garnered more support than we had expected amid greater understanding for the need for our industry," President Atsuyoshi Koike said at a press conference in Tokyo the same day.

Regarding the acquisition of customers, Rapidus said it is currently in discussions with over 60 companies, with the majority made up of international firms, but declined to name them.

The government also holds a "golden share" giving it veto power over key management decisions, as it steps up efforts to make supply chains more resilient to ensure stable procurement of economically critical products such as chips.

"It is a key element of the investments for growth promoted by the government and a national project that must succeed for the sake of the country's interests," Ryosei Akazawa, minister of economy, trade and industry, said at a press conference.

During its press conference, Rapidus said that the "golden share" would not affect its everyday business decisions and that it was a measure to protect the company in the event of issues concerning economic security.

The venture is part of Japan's efforts to strengthen its domestic chip supply chain amid concerns that geopolitical tensions, including growing diplomatic strains between Japan and China, may threaten to disrupt the global chip industry.

"Some customers may be bringing into consideration rapidly shifting global affairs," Koike said.

The industry ministry said it is planning to invest an additional 150 billion yen in the year to March 2027 to purchase shares that could boost its voting rights to around 60 percent after conversion.

Established in 2022, initially with eight major companies investing a total of 7.3 billion yen, Rapidus aims to begin mass production of advanced chips using 2-nanometer technology in the second half of 2027, in technical collaboration with IBM Corp.

Such chips can be used to power artificial intelligence and self-driving vehicles. A nanometer is a billionth of a meter.

The government has disbursed 1.7 trillion yen for research and development to Rapidus and plans additional subsidies of around 630 billion yen in the year to March 2027 and around 300 billion yen in the following year.

Japan's three megabanks MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank are considering extending loans of up to 2 trillion yen in stages, on condition that they are guaranteed by the government, sources close to the matter said.

Rapidus needs over 7 trillion yen for research and development, and mass production as it plans to produce more advanced chips using 1.4-nanometer technology in the future.

The government's investment was made via the Information-technology Promotion Agency, Japan, an independent administrative organization under the jurisdiction of the economy ministry.