Japan backs Rapidus chips

Japan approved another ¥631.5 billion for Rapidus on April 11, deepening its state-backed push to make advanced chips at home. (jen.jiji.com) The money will go to Rapidus, a Tokyo-based chipmaker building a plant in Chitose, Hokkaido, and aiming to start mass production of 2-nanometer semiconductors in fiscal 2027. Officials said the new aid will be used mainly to refine prototypes. (japannews.yomiuri.co.jp) With the latest package, cumulative state support for Rapidus since fiscal 2022 will reach as much as ¥2.454 trillion, according to Jiji Press. Reuters reported total research and development assistance at ¥2.354 trillion. (jen.jiji.com) (money.usnews.com) Japan is trying to rebuild a domestic semiconductor base after decades of losing ground in leading-edge logic chips. The government has also backed Taiwan Semiconductor Manufacturing Company’s Japan expansion in Kumamoto, but Rapidus is the domestic bet on the most advanced end of the market. (pr.tsmc.com 1) (pr.tsmc.com 2) The target matters because 2-nanometer chips are the processors used for the fastest artificial intelligence systems and data centers. Smaller process nodes let chipmakers pack in more transistors, which can improve speed and power efficiency. (research.ibm.com) (newsroom.ibm.com) Rapidus has been leaning on IBM for core technology. The two companies announced a joint development partnership in December 2022 and expanded that work in June 2024 to include chiplet packaging, which links smaller chip blocks into one package. (rapidus.inc) (newsroom.ibm.com) The company moved from plans to hardware in 2025. Rapidus said last year that its pilot line would start up in April 2025 at its Innovative Integration for Manufacturing site in Hokkaido. (rapidus.inc) Tokyo is also trying to line up customers before full production starts. Bloomberg reported the new subsidy is intended to support Rapidus’ work for Fujitsu, which the government hopes can become one of the project’s first clients. (bloomberg.com) The financing gap is still large. Jiji reported this week that the industry ministry is considering loan guarantees for private borrowing, while Bloomberg said Rapidus is seeking about ¥3 trillion in private funding and is targeting an initial public offering around fiscal 2031. (sp.m.jiji.com) (bloomberg.com) Japan’s latest check does not settle whether Rapidus can win enough customers to justify a 2-nanometer foundry. It does show Tokyo is still willing to spend heavily to find out. (japannews.yomiuri.co.jp) (bloomberg.com)