Japan's Rapidus secures massive semiconductor funding
Japanese semiconductor firm Rapidus Corporation announced it has secured 267.6 billion yen (approx. $1.8 billion) in a new funding round from government and private-sector sources. The company stated the capital will help it advance from its current R&D phase toward mass production of 2-nanometer logic semiconductors by 2027.
Established in August 2022, Rapidus is a joint venture backed by eight major Japanese corporations, including Sony, Toyota, and SoftBank. The initiative is a cornerstone of Japan's broader strategy to reclaim a leading role in the global semiconductor industry, a position it held in the 1980s before falling behind competitors in Taiwan, South Korea, and the U.S. The Japanese government's investment arm is now the top shareholder and holds a "golden share," giving it veto power over major corporate decisions to ensure the project aligns with national interests. This public-private consortium is part of a national effort to triple domestic semiconductor sales to 15 trillion yen by 2030. Rapidus is collaborating with IBM, utilizing the American company's 2-nanometer nanosheet technology. More than 100 Rapidus engineers are already working at IBM's research facility in Albany, New York, to accelerate development. The 2nm chips Rapidus aims to produce offer a quantum leap over previous generations, promising up to 45% better performance or 75% less energy consumption compared to 7nm chips. This advancement is critical for power-hungry applications like artificial intelligence, data centers, and autonomous vehicles. The race to 2nm is intensely competitive, with industry giants TSMC and Samsung expected to begin their own mass production in 2025. While Rapidus's 2027 target is behind its main rivals, its focus is on producing specialized, high-performance chips with a short turnaround time.
