On November 21, Japan's Ministry of Economy, Trade and Industry (METI) announced that it will invest ¥100 billion (approximately USD 638 million) in domestic wafer foundry Rapidus through its affiliated agency, the Information-technology Promotion Agency (IPA), during fiscal 2025 (by March 2026). The government will become Rapidus's largest shareholder and hold a "golden share," giving it veto power over critical operational decisions. Any equity transfers or technology partnerships will require government approval.

According to METI, in addition to the ¥100 billion investment this year, the government plans to provide more than ¥10 trillion (around USD 63.88 billion) to Rapidus during fiscal 2026-2027. This includes ¥630 billion (USD 4.03 billion) in 2026, ¥150 billion (USD 958 million) via IPA, and ¥300 billion (USD 1.92 billion) in 2027. If fully implemented, total government support will reach ¥2.9 trillion (approximately USD 18.53 billion).

Roadmap for 2nm and Beyond

Rapidus, established in August 2022 as a joint venture between Toyota, Sony, NTT, NEC, SoftBank, Denso, Kioxia, and Mitsubishi UFJ, plans to start mass production of 2nm chips in the second half of 2027. The company also aims to produce 1.4nm chips in the future, with cumulative investments expected to exceed ¥7 trillion (USD 44.7 billion). Rapidus targets operational profitability by fiscal 2030 and an IPO around 2031.

Rapidus CEO Junyoshi Koike told Japanese media in late July that the foundry is currently negotiating with 30-40 potential clients. He noted that while Rapidus does not plan to compete directly with TSMC, increasing demand for advanced chips could allow the company to attract clients by demonstrating its technological capabilities. Rapidus has formed dedicated teams to brief select clients on trial production results, providing a potential alternative supply source.

Government Perspective

METI Minister Ryosei Akazawa emphasized on November 21, "For national interest, Rapidus is a state-level project that must succeed. We will continue to make every effort to ensure its success."