TOKYO, April 2 (Reuters) - Japan's industry ministry

said on Tuesday it has approved subsidies worth up to 590

billion yen ($3.9 billion) for chip foundry venture Rapidus as

Tokyo pushes forward with plans to rebuild the country's chip

manufacturing base.

Rapidus is headed by industry veterans and is targeting mass

production of cutting-edge chips on the northern island of

Hokkaido from 2027 in partnership with IBM ( IBM ) and

Belgium-based research organisation Imec.

Countries around the world are looking to strengthen their

control over chip supply chains after global shocks including

the COVID-19 pandemic and trade tensions between the United

States and China.

Taiwan Semiconductor Manufacturing Co ( TSM ) , the

world's largest contract chipmaker has spent decades honing its

processes, and many in the industry are sceptical about the

prospects for success by Rapidus.

($1 = 151.5600 yen)