Japan's industry minister Nishimura Yasutoshi has visited the site of a new plant that a Japanese semiconductor company plans to build in the northern prefecture of Hokkaido.

Rapidus was formed last year with investments from Toyota Motor, telecom giant NTT, Sony Group and others. It has the goal of producing leading-edge chips essential for self-driving vehicles and artificial intelligence at the new plant in Chitose City.

The industry ministry has decided to provide the firm with 330 billion yen, or about 2.3 billion dollars, in assistance.

During his visit on Sunday, Nishimura was briefed by Rapidus President Koike Atsuyoshi about the company's business plans.

The plans include putting a trial line into operation in April 2025. The firm also seeks to attract chip-related businesses and research centers, such as universities, to the area.

Nishimura later met business group representatives from the prefecture. The minister told them the government will support human resources development and business launches to help the semiconductor industry agglomerate.

Nishimura told reporters it is no exaggeration to say that Rapidus holds the future of Japan in its hands. He called the company a project for Japan's chip industry to play a central role in the world again. He added the government intends to firmly support it.