The industry ministry on Friday announced a plan for the government to hold a veto-wielding "golden share" in exchange for financial aid to companies such as Rapidus, which aims to realize domestic production of next-generation semiconductors.

Golden shares in the companies will be held by the Information-Technology Promotion Agency, an independent administrative agency under the industry ministry.

Parameters of the golden shares will be drawn up by companies and then screened by the ministry.

Companies capable of producing semiconductors with a circuit line width of up to 2 nanometers in the country by the late 2020s will be eligible for government aid.

In addition to granting the government a golden share and some voting rights, companies that receive government aid will also be required to raise funds from the private sector as much as possible.

The government has already decided to provide more than ¥1.7 trillion to Rapidus. It plans to sell Rapidus shares received in exchange for the aid at an appropriate time, based on the company's stock price and management situation. It will also provide debt guarantees, which will be only partial to prevent the company from becoming too dependent on government support.

The ministry will begin accepting applications for some ¥100 billion in aid around this summer or autumn.