Japanese Chipmaker Rapidus Secures Major Funding
Rapidus Corporation, a Japanese semiconductor manufacturer, has completed a funding round of 267.6 billion yen from the government and private sector companies. The funding is intended to advance the company from its current R&D phase to the mass production of 2-nanometer logic semiconductors by 2027.
Established in August 2022, Rapidus is a consortium backed by eight major Japanese corporations, including Toyota, Sony, and SoftBank. The venture aims to rejuvenate Japan's semiconductor industry, which has seen its global market share fall from a high of 50% in the 1980s to under 10% in recent years. The company's chairman is Tetsuro Higashi, former head of Tokyo Electron, and its CEO is Atsuyoshi Koike, who previously led Western Digital's Japanese unit. To achieve its ambitious goals, Rapidus is forming global partnerships, licensing 2-nanometer node technology from IBM and collaborating with the Belgium-based research hub imec. The move to 2-nanometer production represents a significant technological leap, utilizing a new "Gate-All-Around" (GAA) transistor architecture. Chips built with 2nm technology are projected to deliver up to 45% better performance or use 75% less energy compared to the 7-nanometer chips on the market in 2022. This initiative places Japan in direct competition with global leaders in advanced chipmaking. Taiwan's TSMC, which began 2nm production in late 2025, is the current market frontrunner, with South Korea's Samsung and the United States' Intel also aggressively pursuing 2nm manufacturing. Rapidus is constructing its first fabrication plant, known as IIM-1, in Chitose, Hokkaido. The company broke ground in September 2023 and aims to launch a pilot production line in 2025. The total investment required to reach mass production is estimated to be around 5 to 7 trillion yen over the next decade. The project is a cornerstone of Japan's national strategy for economic and technological resilience.
