Rapidus secures $1.7 billion from Japan’s government and private investors for 2nm chip production — company says it is in active discussions with more than 60 potential customers
Source: Tom’s Hardware
Image credit: Getty / Yuichi Yamozaki
Funding round
Japan’s state‑backed chipmaker Rapidus has closed a ¥250 billion ($1.6 billion) funding round from the Japanese government and 30 private‑sector companies, including Sony, Toyota, SoftBank, Canon, Fujitsu, Denso, Kioxia, and Seiko Epson. The financing supports the company’s work toward 2 nm mass production at its IIM‑1 foundry in Chitose, Hokkaido, targeted for fiscal year 2027.
Government support
Japan’s economy ministry plans to nearly quadruple its budgeted support for advanced semiconductors and AI development to approximately ¥1.23 trillion for the fiscal year starting in April. The government is also pursuing a pledge from TSMC to upgrade its technology and plants in Japan.
Customer interest
CEO Atsuyoshi Koike said at a press conference on Thursday, February 26, that Rapidus is in active discussions with more than 60 companies looking to design chips for AI, robotics, and edge computing. He noted a surge in demand for cutting‑edge chips and growing interest in 2 nm technology, with plans to advance to 1.4 nm and 1 nm nodes thereafter.
Technical progress
- Rapidus opened its pilot line in April 2025 and demonstrated working 2 nm gate‑all‑around (GAA) transistors in July. GAA surrounds the transistor channel on all four sides, improving current control and reducing leakage compared to FinFET designs.
- The Hokkaido facility uses High‑NA EUV lithography equipment from ASML.
- IBM is understood to have roughly 10 engineers on‑site as part of an ongoing technology‑transfer partnership.
Production plans
Rapidus aims to start mass production at an initial rate of 6,000 12‑inch wafers per month, scaling to approximately 25,000 wafers within the first year. The total investment needed to reach that capacity is estimated at around ¥4 trillion; roughly ¥1.7 trillion has been committed from all sources to date.