Japan backs Rapidus with ¥631.5bn

Japan approved another ¥631.5 billion for Rapidus on April 11, pushing state support for the chip startup above ¥2.3 trillion. (reuters.com) Japan’s industry ministry said the new money will speed research and development at Rapidus, which is trying to start mass production of 2-nanometer semiconductors in fiscal 2027. Jiji Press said the funds will be used mainly to refine prototypes. (reuters.com) (nippon.com) A 2-nanometer chip is a newer generation of logic chip, the kind used to process data in servers and artificial intelligence systems. Rapidus is building those chips at its IIM-1 plant in Chitose, Hokkaido, where it says a pilot line is already operating. (rapidus.inc 1) (rapidus.inc 2) Tokyo is paying heavily because the most advanced chipmaking has concentrated in Taiwan, South Korea and the United States, while Japan’s domestic industry has focused more on materials, equipment and older-generation production. Reuters said the latest subsidy is part of a broader push to strengthen domestic supply chains for advanced semiconductors. (reuters.com) Rapidus was established in August 2022 with backing from eight Japanese companies: Denso, Kioxia, MUFG Bank, NEC, Nippon Telegraph and Telephone, SoftBank, Sony and Toyota. The company says its capital, including legal capital surplus, stood at ¥274.95 billion as of February 27, 2026. (rapidus.inc) The company’s timetable is aggressive. Rapidus says it began operating 2-nanometer gate-all-around transistors in July 2025, and industry reports have tracked earlier milestones including the arrival of extreme ultraviolet lithography equipment in December 2024 and first exposure tests in April 2025. (rapidus.inc) (convergedigest.com) Japan is also subsidizing foreign chipmakers, not just Rapidus. Reuters reported last week that Taiwan Semiconductor Manufacturing Co. is targeting 2028 to begin 3-nanometer production in Japan, after Tokyo previously approved up to ¥732 billion for its second Kumamoto plant. (msn.com) (trendforce.com) The harder question is whether Rapidus can turn state funding into a durable foundry business. Bloomberg reported that some of the new capital will support work for Fujitsu, one of the early customers Tokyo hopes can help the company reach commercial production. (bloomberg.com)