Japan Invests $1.3 Billion in Rapidus to Boost 2nm Chip Production by 2027
The Japanese government is taking significant strides to boost its domestic semiconductor manufacturing industry, committing $1.3 billion (200 billion yen) in funding for chipmaker Rapidus in fiscal 2025. This move is aimed at stimulating further investment and financing from the private sector, with Rapidus aiming to achieve mass production of 2nm chips by 2027.
The Japanese government is taking significant strides to boost its domestic semiconductor manufacturing industry, committing $1.3 billion (200 billion yen) in funding for chipmaker Rapidus in fiscal 2025. This move is aimed at stimulating further investment and financing from the private sector, with Rapidus aiming to achieve mass production of 2nm chips by 2027.
However, reaching the 2027 goal won't come cheap, with total costs projected to reach a staggering 5 trillion yen. While the Japanese government has already pledged 920 billion yen in subsidies, a funding gap of approximately 4 trillion yen remains a key concern. To address this, the government plans to support Rapidus through debt guarantees and investments from national institutions, incorporating these measures into an upcoming economic stimulus package.
The scale of government investment will depend on contributions from private sources, but some officials are cautious about the balance between public and private funding. Meanwhile, private financial institutions, including Sumitomo Mitsui Banking Corporation, Mizuho Bank, and MUFG Bank, are considering contributing up to 25 billion yen in late 2025, though final amounts are yet to be determined.
Rapidus is currently constructing a plant in Chitose, Hokkaido, overseen by the New Energy and Industrial Technology Development Organization (NEDO). This facility is expected to be used for trial production of 2nm chips, with plans for mass production in 2027. The new proposal suggests that the government will acquire Rapidus shares in exchange for assets such as the factory and other publicly funded infrastructure, valued at around 600 billion yen. This arrangement aims to further secure government control over critical production capabilities.
Since its establishment in 2022, Rapidus has received 7.3 billion yen in private investments from major shareholders like Toyota, SoftBank, and MUFG Bank. SoftBank has expressed interest in increasing its stake, and other companies, such as Fujitsu, which did not initially invest, are now planning to join in.
