Japan's Rapidus Secures Funding
Japanese semiconductor firm Rapidus Corporation announced it has secured 267.6 billion yen in a funding round from the Japanese government and private companies. The capital is intended to help the company move from its current R&D phase to the mass production of 2-nanometer logic semiconductors by 2027.
Established in August 2022, Rapidus Corporation is a government-backed initiative to re-establish Japan's leadership in the advanced semiconductor industry. The company is a cornerstone of Japan's national strategy for economic and technological resilience, aiming to reduce dependence on foreign chip manufacturers. Key leadership includes Chairman Tetsuro Higashi, former president of Tokyo Electron, and President and CEO Atsuyoshi Koike, who previously led Western Digital Japan. The latest funding round includes 100 billion yen from the Japanese government's Information-Technology Promotion Agency and 167.6 billion yen from a consortium of 32 private companies. Prominent investors include Canon, Fujitsu, NTT, SoftBank, Sony Group, and Toyota Motor Corporation. This public-private partnership underscores a coordinated national effort to bolster Japan's chip manufacturing capabilities. The government's investment grants it an initial 11.5% of voting rights, which can increase to over 50% if Rapidus faces financial difficulties. Japan also holds a "golden share," giving it veto power over major corporate decisions to protect against foreign influence and economic security risks. Rapidus is partnering with IBM to develop and fabricate its 2-nanometer chips, leveraging IBM's gate-all-around (GAA) nanosheet transistor technology. This advanced technology promises up to 45% better performance or 75% less energy consumption compared to the 7nm chips that were on the market in 2022. To facilitate this technology transfer, over 100 Rapidus engineers have been training at IBM's facility in Albany, New York. The company is constructing its primary manufacturing facility, called the Innovative Integration for Manufacturing (IIM), in Chitose, Hokkaido. A pilot production line began operations in April 2025, with the goal of starting mass production in the latter half of 2027. This initiative is a response to Japan's declining share of the global semiconductor market, which fell from over 50% in the 1980s to less than 10% in recent years. The project is considered a high-risk, high-return venture aimed at positioning Japan for the next wave of innovation in high-performance computing, AI, and quantum computing.
