The global semiconductor industry is going through a tense phase. Countries are racing to secure chip supply, reduce dependence on overseas manufacturing, and build advanced production at home.
For Japan, regaining leadership in cutting-edge chip manufacturing has become a national priority. That is where Rapidus comes in.
Tokyo-based Rapidus Corporation has secured 267.6 billion yen (around $1.7 billion) in fresh funding from the Japanese government and 32 private companies. The goal is clear: move from research and development to full mass production of 2-nanometer logic semiconductors by 2027.
Out of the total amount, 100 billion yen came from Japan’s Information-Technology Promotion Agency (IPA), which operates under the Ministry of Economy, Trade and Industry (METI).
Before this investment, METI ran a public selection process between September and October 2025 to identify companies capable of ensuring stable semiconductor production in Japan.
Rapidus was officially selected in November 2025 and later applied for funding through IPA. The investment has now been secured. This shows strong policy-level support. Japan is not just talking about chip independence. It is putting serious money behind it.
32 private companies pitched in
The remaining 167.6 billion yen was invested by 32 private companies. The list includes major Japanese and global players such as Canon, Fujitsu, NTT, SoftBank, Sony Group, Toyota Motor Corporation, Honda, NEC, Kioxia, MUFG Bank, and Development Bank of Japan, among others.
Several of these companies had already invested during Rapidus’ initial funding round in 2022 and have now added more capital.
Including 7.3 billion yen raised at the company’s founding, Rapidus’ total capital and legal surplus now stands at nearly 275 billion yen.
This mix of public and private backing sends a strong signal. Rapidus is not a small experiment. It is a coordinated national effort supported by both the state and industry leaders.
Focus On 2nm Chips
Rapidus is working on 2nm-generation logic semiconductors, which represent one of the most advanced manufacturing nodes in the world.
Chips at this scale are critical for high-performance computing, AI systems, advanced data centres, and next-generation communication networks.
Since fiscal year 2022, Rapidus has also received subsidies from Japan’s New Energy and Industrial Technology Development Organisation (NEDO).
These funds are part of large R&D programs focused on: 2nm semiconductor integration technology, short turnaround time manufacturing, chiplet design and packaging technology, and Japan–U.S. collaboration on advanced semiconductor development.
In simple terms, Rapidus is building not just smaller chips but also faster, more efficient production systems.
What’s next?
Right now, Rapidus is in the research and development phase. The company plans to gradually move into full-scale production by 2027.
To make that happen, Rapidus says it will continue raising funds through additional capital increases and loans from both public and private sources.
The company’s broader mission is to develop and manufacture some of the world’s most advanced logic semiconductors. It also aims to shorten design cycles, improve wafer processing, and enhance 3D packaging technologies.
Japan once dominated global semiconductor manufacturing. Over time, that leadership shifted to other regions. With Rapidus, the country is making a serious attempt to return to the front line of advanced chip production.
