Rapidus secures ¥267.6B for 2nm chip production
Japanese semiconductor firm Rapidus Corporation announced it has secured 267.6 billion yen (approx. $1.8B) in a funding round supported by the Japanese government and private companies. The capital is intended to help the company move from its current R&D phase to the mass production of 2-nanometer logic semiconductors by 2027.
The Japanese government is not just a supporter but the top shareholder in Rapidus, supplying ¥100 billion of the latest funding round. This investment gives the government significant influence, including a "golden share" that allows it to veto key management decisions to protect against foreign influence and economic security risks. The government's total financial commitment to the chipmaker is expected to reach nearly ¥1 trillion. Rapidus was established in August 2022 as a joint venture of eight major Japanese corporations, including Sony, Toyota, and SoftBank. The recent funding round saw an additional 32 private companies, such as Canon and Fujitsu, contribute a combined ¥167.6 billion, signaling broad domestic industry support for the initiative. The company is led by industry veterans Tetsuro Higashi, former head of Tokyo Electron, and Atsuyoshi Koike, who previously led Western Digital's Japanese subsidiary. This national project aims to reclaim Japan's former glory in the semiconductor industry, a sector it dominated in the 1980s with over 50% of the global market share. Currently, the most advanced chip manufactured in Japan is a 40nm chip, making the leap to 2nm a significant technological jump. Japan's investment in its semiconductor industry, as a proportion of its GDP, is more than three times higher than that of the United States. To achieve its ambitious goal, Rapidus is collaborating with global tech giants. The company has a strategic partnership with IBM to jointly develop 2nm node technology, with over 100 Rapidus engineers working at IBM's research center in New York. It has also joined the "Core Partner Program" of the Belgian research hub IMEC. The company is constructing its advanced fabrication plant, named the Innovative Integration for Manufacturing (IIM), in Chitose, Hokkaido, near the New Chitose Airport. Pilot production of 2-nanometer chips began in April 2025, with the company showcasing its first prototypes in July 2025. The race to 2nm is globally competitive, with industry leader TSMC having started mass production of its 2nm chips in late 2025. Samsung also plans to start its 2nm production in 2025. Rapidus is aiming to disrupt this market by offering a foundry service with a focus on fast turn-around times.
