Japan backs Rapidus with ¥631.5bn

Japan approved another ¥631.5 billion for Rapidus on April 11, pushing more state money into a domestic chipmaker racing to supply advanced processors for artificial intelligence. (reuters.com) Japan’s Ministry of Economy, Trade and Industry said the new support will accelerate research and development at Rapidus. Reuters reported the latest allocation brings the company’s cumulative research and development assistance to ¥2.354 trillion. (reuters.com) Rapidus is trying to make 2-nanometer logic chips, a leading-edge generation used for the kind of dense computing needed to train and run artificial intelligence models. Jiji and Nippon.com reported the company is targeting mass production in fiscal 2027 and plans to use the new money mainly to refine prototypes. (nippon.com) A foundry is a contract chip factory: customers design semiconductors, and the foundry manufactures them. Japan is backing Rapidus as a way to rebuild domestic capacity in advanced logic chips after decades in which production leadership shifted to Taiwan and South Korea. (reuters.com) The project is centered in Chitose, Hokkaido, where Rapidus is building out its manufacturing base. The company said in April 2025 that its pilot line for 2-nanometer semiconductor projects would start up that month, with mass production still targeted for 2027. (rapidus.inc) Rapidus was founded in 2022 with backing from major Japanese companies including Toyota, Sony, SoftBank and NTT. Japan has treated the venture as part of a broader industrial policy to secure chip supply chains and restore local manufacturing capability in strategically important semiconductors. (chosun.com) Tokyo is also funding work around chip design, not only fabrication. Reports on the April 11 package said the government’s affiliated New Energy and Industrial Technology Development Organization would separately support semiconductor design projects involving Fujitsu and IBM Japan. (thefinance360.com) That matters because advanced chips are not just factories and machines; they also require design tools, process know-how and customers willing to build products on a new manufacturing platform. Bloomberg reported the new capital is intended in part to support Rapidus’ work for Fujitsu, one of the early clients Tokyo hopes can help launch the effort. (bloomberg.com) The scale of the bet is large, but so is the challenge. Rapidus is trying to enter a market dominated by established manufacturers with years of production experience, and Japan’s latest subsidy shows the government is still paying heavily to keep that 2027 timetable in reach. (bloomberg.com)