Japan's Rapidus Raises $1.7B for 2nm Chips
Japanese semiconductor firm Rapidus has secured $1.7 billion to fund its goal of mass-producing advanced 2nm chips by 2027. The funding highlights the intensifying global competition for semiconductor leadership, driven by the demands of next-generation AI and cloud computing.
Rapidus was established in August 2022 by a consortium of eight major Japanese corporations, including Sony, Toyota, NTT, and SoftBank. The company is led by CEO Atsuyoshi Koike, who previously headed Western Digital's Japan subsidiary, and Chairman Tetsuro Higashi, former chairman of Tokyo Electron. This initiative is a cornerstone of Japan's strategy to reclaim its leadership in the semiconductor industry, a position it lost after dominating in the 1980s. The Japanese government is the largest shareholder in Rapidus, holding special "golden shares" that give it veto power over key management decisions to protect the national interest. The technological foundation for the 2nm process comes from a strategic partnership with IBM. Rapidus is licensing IBM's breakthrough gate-all-around (GAA) transistor technology, and more than 100 of its engineers are working alongside IBM researchers at the Albany NanoTech Complex in New York. The company's first advanced fabrication plant, named IIM-1 (Innovative Integration for Manufacturing), is under construction in Chitose, Hokkaido. A pilot production line is scheduled to begin operations in April 2025, with the goal of full mass production starting in 2027. Rapidus faces intense competition from established foundries. Industry leader TSMC and rival Samsung both began mass production of their 2nm nodes in late 2025, putting them approximately two years ahead of Rapidus's target. Despite the timeline, Rapidus has begun securing future clients. The company has a contract to produce next-generation AI accelerators for Canadian startup Tenstorrent. IBM is also expected to be a key customer for the foundry once it is operational.
