Japan plans another $944 million for chipmaker Rapidus
Tokyo tops up its chip subsidies: ¥150 billion in the 2027 budget for its 2-nanometer hopeful — aimed squarely at reducing dependence on TSMC.
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At a glance
- METI plans ¥150 billion (about $944 million) in the fiscal 2027 budget, per Nikkei
- Goal: manufacture 2-nanometer AI chips in Japan from 2027
- February 2026 round: ¥267.6 billion from the state and 32 private companies
- Investors include Canon, Fujitsu, Sony, SoftBank, NTT and Toyota
- Strategic motive: reducing dependence on Taiwan's TSMC
Japan's economy ministry METI plans to allocate another 150 billion yen — about 944 million US dollars — to domestic chipmaker Rapidus in the fiscal 2027 budget, Nikkei reports; formal confirmation from the ministry is still pending. The goal is to build up domestic production of cutting-edge 2-nanometer chips for AI applications.
Rapidus was only founded in 2022 and is meant to close Japan's gap in semiconductor manufacturing in one leap. The government is pursuing a strategic goal: less dependence on Taiwanese foundry TSMC, which today carries almost the entire supply of leading-edge chips for AI, robotics and quantum computing.
The new tranche joins a growing chain of support: in February, Rapidus raised 267.6 billion yen — 100 billion from the state via the IT promotion agency IPA and 167.6 billion from 32 private companies, including Canon, Fujitsu, Sony, SoftBank, NTT and Toyota. "This strategic funding plan will enable Rapidus to steadily progress from its current R&D phase to mass production of 2nm logic semiconductors by 2027," the company stated in its announcement.
The timeline remains aggressive: 2-nanometer mass production from 2027 — a leap that took TSMC and Samsung decades. In June, Rapidus also agreed to cooperate with the UK Semiconductor Centre.
For Europe, this is a reference case: Japan is showing how a state tries to buy technological sovereignty in AI chips through repeated billion-scale tranches and private co-financing. Whether the bet pays off will be decided by the yield of the 2-nanometer process — the industry's harshest metric.
FAQ
What is Rapidus?
A Japanese chipmaker founded in 2022 that, backed by massive state funding, aims to produce cutting-edge 2-nanometer chips in Japan from 2027 — as a counterweight to dependence on TSMC.
How much additional money is Rapidus getting now?
The economy ministry METI plans to include 150 billion yen, about $944 million, in the fiscal 2027 budget, according to Nikkei. The amount has not been formally approved yet.
Why is Japan investing so heavily in domestic chips?
Almost all leading-edge chips for AI, robotics and quantum computing currently come from TSMC in Taiwan. Japan wants to reduce that strategic dependence and regain manufacturing capability.
