Japan Funds 2nm Chipmaker Rapidus
Japanese semiconductor company Rapidus announced it has secured ¥267.6 billion in a new funding round from government and private sector sources. The company stated the funds will help it move from its R&D phase toward mass production of 2-nanometer logic semiconductors by 2027.
This ambitious national project is backed by a consortium of 32 private Japanese companies, including heavyweights like Toyota, Sony, SoftBank, and Canon. The Japanese government is also a major financial supporter, with commitments of over ¥1.7 trillion in subsidies and plans for further investment, potentially giving it a majority stake if needed to ensure stability. Rapidus is collaborating with the Leading-edge Semiconductor Technology Center (LSTC), a research and development hub established by the Japanese government. This partnership, which also involves international collaboration with IBM and the European research organization imec, is designed to fast-track the development of beyond-2nm technologies. LSTC focuses on the R&D of materials and equipment for advanced chip manufacturing, while Rapidus will handle the production. The company is constructing its first fabrication plant, known as IIM-1, in Chitose, Hokkaido, a region with abundant water and renewable energy resources. Prototyping of 2nm chips began in April 2025, with the goal of starting mass production in the second half of 2027. Rapidus aims to compete with industry giants like TSMC and Samsung by offering significantly faster turnaround times for chip production. The company is implementing a fully automated, single-wafer processing system across both front-end and back-end manufacturing, which it claims will drastically reduce delivery times. This integrated approach is a key part of its strategy to attract customers in the high-demand sectors of AI and high-performance computing. The initial production target for the IIM-1 facility is 6,000 wafers per month, with plans to ramp up to 25,000 wafers per month within the first year of operation. This rapid expansion is a high-risk, high-reward strategy as Rapidus seeks to establish itself as a key player in the global semiconductor market. The company is also looking ahead, with plans to manufacture even more advanced 1.4-nanometer and 1-nanometer chips in the following years.
