Japan ups Rapidus funding

Japan approved another 631.5 billion yen, about $3.96 billion, for Rapidus on April 11, deepening its bet on a domestic advanced-chip maker. (reuters.com) Japan’s industry ministry said the new money will speed research and development at Rapidus. Reuters reported total research-and-development assistance now stands at 2.354 trillion yen. (reuters.com) Rapidus is trying to make 2-nanometer logic chips, a leading-edge generation used for faster and more power-efficient processors. The company says it is targeting mass production of 2-nanometer logic semiconductors in 2027. (rapidus.inc) The company’s factory plan is centered in Chitose, on Japan’s northern island of Hokkaido. Rapidus said in July 2025 that it had successfully operated 2-nanometer gate-all-around transistors at its IIM-1 pilot line there. (rapidus.inc) Rapidus was set up in August 2022 with backing from eight Japanese companies: Denso, Kioxia, MUFG Bank, NEC, NTT, SoftBank, Sony and Toyota. IBM announced a strategic partnership with Rapidus in December 2022 to advance logic-scaling technology in Japan. (rapidus.inc) (ibm.com) Tokyo’s chip push has expanded beyond one startup. Reuters reported the ministry also said the New Energy and Industrial Technology Development Organization would support semiconductor design projects involving Fujitsu and IBM Japan. (reuters.com) Japan has also been using subsidies to bring in outside manufacturers. Reuters reported on April 1 that Taiwan Semiconductor Manufacturing Company is expected to begin equipment installation and mass production of 3-nanometer wafers in 2028 at its second factory in Japan. (reuters.com) The scale of support shows how far Japan is leaning on industrial policy to rebuild capacity it once dominated. Rapidus still has to turn a subsidized pilot line into a commercial foundry with customers, yields and private financing. (reuters.com) (bloomberg.com)