Japan to invest 400 billion yen more in Rapidus

Japan's Ministry of Economy, Trade and Industry (METI) has announced a plan to provide an additional 400 billion yen in investment to Rapidus, a semiconductor foundry, over the fiscal years 2027 to 2029. If implemented, this would bring the Japanese government's total investment in the company to 650 billion yen.

The funding, to be channeled through the Information-technology Promotion Agency (IPA), is intended to strengthen Rapidus's equity base. This capital boost is designed to support the company's efforts to secure 2 trillion yen in loans from private financial institutions, which are necessary to fund production lines for 2nm-generation semiconductors. Rapidus aims to begin mass production of these advanced chips in the latter half of fiscal year 2027.

In addition to direct equity investments, the government provides support through research and development commissions. Rapidus has previously received significant funding through the New Energy and Industrial Technology Development Organization (NEDO), with total approved R&D commission amounts reaching approximately 2.35 trillion yen. The government also plans to request approximately 300 billion yen for R&D commissions in fiscal year 2027.