Japan's Rapidus Secures Major Funding
Japanese semiconductor firm Rapidus Corporation announced it has secured 267.6 billion yen in funding from the Japanese government and private sector companies. The company stated the strategic funding will enable its progress from research and development to the mass production of 2-nanometer logic semiconductors by 2027.
This major investment is a public-private partnership, with Japan's government contributing ¥100 billion through its Ministry of Economy, Trade and Industry (METI). The remaining ¥167.6 billion comes from a consortium of 32 Japanese corporate giants, including Toyota, Sony, SoftBank, and Honda. The deal makes the Japanese government the top shareholder in Rapidus, holding a "golden share" that grants it veto power over key management decisions. This structure underscores the project's status as a national strategic priority to re-establish Japan as a leader in advanced semiconductor manufacturing. Established in 2022, Rapidus is central to Japan's strategy to leapfrog its current domestic chipmaking capabilities, which lag at the 40-nanometer level. The initiative was spurred by geopolitical concerns over supply chain disruptions and the heavy global reliance on Taiwan for advanced chips. To bridge the technology gap, Rapidus has a critical partnership with IBM, which is providing its cutting-edge 2-nanometer process technology. This collaboration is a key part of the Japan-U.S. Task Force for Next-Generation Semiconductors, a departure from the country's more isolated approach in the 1980s when it last dominated the market. The 2027 timeline for mass production places Rapidus in direct competition with established industry titans. Global foundry leader TSMC and rival Samsung both aim to start 2nm production in 2025, while Intel is targeting a similar timeframe with its 18A process technology. Manufacturing will take place at the company's new IIM-1 (Innovative Integration for Manufacturing) facility in Chitose, Hokkaido. The company plans an aggressive ramp-up, targeting an initial output of 6,000 wafers per month before scaling that capacity fourfold to 25,000 wafers per month within the first year of operation.
