Key facts
- Japan's trade ministry plans to seek 150 billion yen ($944 million) for Rapidus in the fiscal 2027 budget.
- The government will provide around 1 trillion yen ($6.37 billion) in additional aid to Rapidus over two years ending fiscal 2027.
- Rapidus aims to mass-produce 2-nanometer chips by fiscal 2027.
- Rapidus has received significant funding from the Information-Technology Promotion Agency (IPA) and private sector companies.
- Rapidus projects needing more than $44.4 billion by fiscal year 2031.
The Japanese trade ministry plans to seek 150 billion yen, approximately $944 million, in additional investment for the homegrown chipmaker Rapidus in its fiscal 2027 budget. This move aims to bolster the company's capital and encourage lending from major banks as Rapidus works towards mass-producing 2-nanometer chips by fiscal 2027.
This proposed investment follows recent significant funding rounds for Rapidus. The Information-Technology Promotion Agency (IPA) provided an additional $943 million, bringing the company's total funding to $2.65 billion. Earlier funding included $620 million from the IPA and $1.64 billion from 32 private-sector companies, including major Japanese corporations like Canon, Fujitsu, NTT, SoftBank, and Sony Group. The company's stated capital and legal capital surplus now stands at $1.72 billion.
Furthermore, the Japanese government has pledged approximately 1 trillion yen, or $6.37 billion, in additional aid to Rapidus over the two years ending fiscal 2027. This support is part of Japan's crisis management investment plans for critical industries. Rapidus projects a total capital requirement exceeding $44.4 billion by fiscal year 2031, with about $19 billion anticipated from private sector financing backed by government guarantees. The company is focused on evolving from research and development to full-scale 2nm logic semiconductor manufacturing through a combination of public and private capital.