Japan ups Rapidus funding

Japan approved another ¥631.5 billion, about $4 billion, for Rapidus on April 11, pushing more public money into its bid to make leading-edge chips at home. (reuters.com) Japan’s Ministry of Economy, Trade and Industry said the new support will speed research and development at Rapidus, a Tokyo-based chipmaker aiming to start mass production of 2-nanometer logic semiconductors in 2027. (reuters.com) (rapidus.inc) With the latest package, Rapidus’ total research-and-development assistance reaches ¥2.354 trillion, according to Reuters. Jiji Press reported the broader cumulative state support figure at about ¥2.454 trillion. (reuters.com) (nippon.com) A semiconductor is the tiny switch that controls electricity inside phones, cars, servers, and factory gear. The most advanced logic chips are the “brains” used to process artificial intelligence workloads, and Japan wants more of that production on its own soil. (reuters.com) (rapidus.inc) Rapidus is building that manufacturing base in Chitose, Hokkaido, where its IIM-1 plant is designed for 2-nanometer chips. The company says the pilot line was scheduled to be operational in April 2025 and mass production is expected in 2027. (rapidus.inc 1) (rapidus.inc 2) The company was established on August 10, 2022, with backing from eight Japanese firms: Kioxia, Sony Group, SoftBank, Denso, Toyota Motor, NEC, Nippon Telegraph and Telephone, and MUFG Bank. Rapidus says its capital, including legal capital surplus, stood at ¥274.95 billion as of February 27, 2026. (rapidus.inc 1) (rapidus.inc 2) Japan has been widening the policy around Rapidus rather than treating it as a one-company rescue. Reuters reported on April 11 that the ministry also backed semiconductor design projects by Fujitsu and IBM Japan through the New Energy and Industrial Technology Development Organization. (reuters.com) That fits a larger spending plan unveiled in November 2024, when Prime Minister Shigeru Ishiba said Japan would provide support worth ¥10 trillion or more for semiconductors and artificial intelligence by fiscal 2030. The government said it wants to attract more than ¥50 trillion in combined public and private investment over the decade. (reuters.com) (jst.go.jp) The open question is whether Rapidus can turn subsidies into customers fast enough to compete with established foundries such as Taiwan Semiconductor Manufacturing Company, Samsung, and Intel. For now, Tokyo is still writing checks on the assumption that chip capacity is industrial policy, supply-chain insurance, and national security at the same time. (bloomberg.com) (reuters.com)