Rapidus secures ¥267.6B ($1.7B) for 2nm mass production by 2027; Japan largest shareholder

Japan's Rapidus Corporation closed a ¥267.6 billion ($1.7 billion USD) funding round split between ¥100 billion from the government's Information-technology Promotion Agency and ¥167.6 billion from 32 private companies including Canon, Fujitsu, NTT, SoftBank, Development Bank of Japan, and Sony Group. The funding marks Japan's aggressive bet to revive domestic semiconductor manufacturing at the leading edge and positions the four-year-old startup as a potential rival to TSMC and Samsung.

Rapidus targets 2nm mass production beginning in the second half of 2027 at its IIM-1 fab in Chitose, Hokkaido. The company operates a single pilot line that installed ASML's first mass-production-grade EUV scanner in Japan in December 2024 and produced a 2nm gate-all-around prototype achieving expected electrical characteristics in July 2025. CEO Atsuyoshi Koike said more than 60 companies are in talks over 2nm capacity, though none has yet signed a volume agreement.

The government stake makes Tokyo the largest single shareholder with a golden share giving it veto power over major decisions including technology partnerships and share transfers, while keeping formal voting power at 11.5 percent. Government also plans to construct fab buildings and tools and transfer them to Rapidus as in-kind equity contributions, removing earlier purchase obligations. This structure aligns state and private capital while preserving operational autonomy.

For chipmakers and systems architects, Rapidus' 2027 target matters because it represents a viable third-party 2nm option outside TSMC and Samsung. The value proposition emphasizes fast turnaround and small batch volumes for iterative design work—a competitive position for companies that need cutting-edge silicon but are willing to trade volume for speed and customization. Production capacity will ramp from ~6,000 wafer starts per month initially to ~25,000 within the first year.