Japan's Rapidus strives to mass produce 2-nanometer chips by 2027, but faces a funding gap of 4 trillion yen
Jan 15,2025

Japanese semiconductor manufacturer Rapidus is striving to achieve its goal of mass producing 2-nanometer chips by 2027. According to Japanese media reports, Rapidus is facing funding gaps and technological challenges. The company has established a wafer foundry in Hokkaido, but the path to mass production is full of challenges, including raising funds, establishing mass production technology, and expanding customers.
Rapidus President Junichi Koike stated that the development and mass production of 2-nanometer chips require a total of 5 trillion yen. Although Rapidus started late, it still hopes to promote the mass production of 2-nanometer chips. Rapidus was established with a capital of 7.3 billion yen from 14 individual shareholders and 8 Japanese companies, and later received 920 billion yen in funding support from the Japanese government's New Energy Industry Technology Development Agency (NEDO). However, it still lacks 4 trillion yen from the required 5 trillion yen.
To overcome this funding gap, Rapidus is seeking capital increase and financing. Last summer, Rapidus discussed capital increase intentions with eight corporate shareholders, including NTT (Nippon Telegraph&Telephone), Sony Group (Sony Group) NEC、 Mitsubishi UFJ Bank and others have basically agreed to increase capital. The Japan Policy Investment Bank is considering a maximum investment of 100 billion yen, while Sumitomo Mitsui Banking Corporation and Mizuho Bank are also considering a maximum investment of 5 billion yen.
However, these shareholders may have to wait until after the fiscal year 2025 to contribute, and the specific amount of contribution will depend on Rapidus' trial production situation. Rapidus is actively seeking investors and may seek investment from potential clients.
In terms of technology, Rapidus is collaborating with IBM in the United States and has dispatched over 140 engineers to the Albany NanoTech Complex in New York for research. They plan to collaborate with IBM to form a research and development team of 500 people.
Rapidus' goal is to catch up with semiconductor giants such as TSMC, but this is an unknown factor. Especially, 2-nanometer chips are important tools for driving high-performance computers such as artificial intelligence, and are expected to have a high demand, making research and development competition very fierce. TSMC, Samsung Electronics, and Intel all plan to mass produce 2-nanometer chips, but the manufacturing technology of Japanese companies is still at the level of 15 years ago
Rapidus President Junichi Koike stated that the development and mass production of 2-nanometer chips require a total of 5 trillion yen. Although Rapidus started late, it still hopes to promote the mass production of 2-nanometer chips. Rapidus was established with a capital of 7.3 billion yen from 14 individual shareholders and 8 Japanese companies, and later received 920 billion yen in funding support from the Japanese government's New Energy Industry Technology Development Agency (NEDO). However, it still lacks 4 trillion yen from the required 5 trillion yen.
To overcome this funding gap, Rapidus is seeking capital increase and financing. Last summer, Rapidus discussed capital increase intentions with eight corporate shareholders, including NTT (Nippon Telegraph&Telephone), Sony Group (Sony Group) NEC、 Mitsubishi UFJ Bank and others have basically agreed to increase capital. The Japan Policy Investment Bank is considering a maximum investment of 100 billion yen, while Sumitomo Mitsui Banking Corporation and Mizuho Bank are also considering a maximum investment of 5 billion yen.
However, these shareholders may have to wait until after the fiscal year 2025 to contribute, and the specific amount of contribution will depend on Rapidus' trial production situation. Rapidus is actively seeking investors and may seek investment from potential clients.
In terms of technology, Rapidus is collaborating with IBM in the United States and has dispatched over 140 engineers to the Albany NanoTech Complex in New York for research. They plan to collaborate with IBM to form a research and development team of 500 people.
Rapidus' goal is to catch up with semiconductor giants such as TSMC, but this is an unknown factor. Especially, 2-nanometer chips are important tools for driving high-performance computers such as artificial intelligence, and are expected to have a high demand, making research and development competition very fierce. TSMC, Samsung Electronics, and Intel all plan to mass produce 2-nanometer chips, but the manufacturing technology of Japanese companies is still at the level of 15 years ago