Japanese Chipmaker Rapidus Secures Major Funding
Japanese semiconductor manufacturer Rapidus Corporation has secured 267.6 billion yen in a new funding round from the Japanese government and private companies. The investment is aimed at advancing the company's research and development to begin mass production of 2-nanometer logic semiconductors by 2027.
This new funding includes 100 billion yen from Japan's Ministry of Economy, Trade and Industry (METI), positioning the government as the top shareholder. The state can increase its voting rights from 11.5% to 40% if the company faces financial distress and holds a "golden share" to veto key decisions, signaling a national strategic priority. A consortium of 32 private companies contributed the remaining 167.6 billion yen. Backers include a wide range of Japanese industrial giants such as Toyota, Sony, SoftBank, Canon, NTT, and Kioxia, highlighting a coordinated national effort to rebuild the country's advanced semiconductor manufacturing capabilities. Rapidus was established in August 2022 as a joint venture by eight major Japanese corporations. Its primary mission is to reverse a decades-long decline; Japan's global semiconductor market share fell from over 50% in the 1980s to roughly 10% by 2022. The company is focused on 2-nanometer chips, which can offer a 45% performance boost or use 75% less energy than the 7nm chips common today. This advanced technology is considered critical for future applications in artificial intelligence, autonomous driving, and high-performance computing. To achieve its ambitious goals, Rapidus is not working in isolation. It has formed crucial partnerships with the US-based IBM and the Belgium-based research hub Imec to leverage their expertise in advanced semiconductor technology development. The 2027 target for mass production places Rapidus in a competitive race against industry leaders. Taiwan's TSMC and South Korea's Samsung both began volume production of their own 2nm chips in the last quarter of 2025.
