Japan Backs Rapidus With $943M as 2nm Chip Push Accelerates, June 05

Japan’s government completed a 150 billion yen ($943 million USD) investment in Rapidus Corporation on June 5, 2026. The funding came through the Information-Technology Promotion Agency under the Ministry of Economy, Trade and Industry. This is the second government capital injection this year, following a 100 billion yen investment in February. The move signals Tokyo’s determination to build domestic advanced chip manufacturing capacity.

Total Funding Reaches $1.8 Billion as Government Doubles Down

Rapidus has now received 250 billion yen in direct government funding across two rounds in 2026. Combined with 167.6 billion yen from 32 private companies including Canon, Fujitsu, NTT, SoftBank and Sony Group, total capital now stands at 424.95 billion yen. Industry Minister Ryosei Akazawa called Rapidus a cornerstone of Japan’s growth investment strategy and a national project that must succeed.

Government Gains Control Rights if Company Struggles

The latest investment gives Japan’s government up to 60 percent voting rights if Rapidus faces financial difficulty. Under normal circumstances, the government will hold just 11.5 percent voting rights as the largest shareholder, avoiding interference with management. This safety clause protects the state’s massive investment while allowing the company operational independence during stable periods.

2nm Production Target Set for 2027

Rapidus will use the new funding for equipment investment to mass-produce 2-nanometer semiconductors and research 1.4-nanometer chips. The company aims to transition from research and development to full-scale 2nm logic semiconductor manufacturing by 2027. Japan has committed approximately 2.9 trillion yen in total support through 2027, including research subsidies and commissioned development work.

U.S. Collaboration Underpins Japan’s Chip Strategy

Since fiscal 2022, Rapidus has received subsidies from Japan’s New Energy and Industrial Technology Development Organization for projects including 2nm semiconductor integration technology based on Japan-U.S. collaboration. The company also develops chiplet and package design for next-generation semiconductors. Akazawa emphasized the project’s importance for national interest and semiconductor sovereignty.

Final Thoughts

Japan is betting heavily on Rapidus to secure domestic chip leadership. With $1.8 billion in government funding committed and a 2027 production target, the state is treating advanced semiconductors as a strategic asset, not a market commodity.

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