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Japan to invest $635M in chipmaker Rapidus in 2025

Rapidus is building a plant in the city of Chitose in Hokkaido to start mass production of next-generation semiconductors with a circuit line width of 2 nanometers in 2027.

Japan’s government plans to invest ¥100 billion (USD 635 million) in domestic chipmaker Rapidus under its fiscal 2025 budget.  

The company is building a plant in the city of Chitose in Hokkaido to start mass production of next-generation semiconductors with a circuit line width of 2 nanometers in 2027, according to a report by the Japan Times.

The government hopes the investment will boost private funding for Rapidus.

The government will continue to support Rapidus’ production plan, economic revitalization minister Ryosei Akazawa said, according to the Japan Times report.

A panel of experts has suggested that in order to facilitate quick decision-making, the government should not interfere excessively in corporate management after its investment.

Rapidus Corporation was founded in 2022 by the government and eight domestic firms to develop and manufacture advanced chips. Toyota and Sony are among the companies that have invested billions in Rapidus.

This month Rapidus reached a milestone by installing Japan’s first Extreme Ultraviolet (EUV) lithography machine from ASML. This advanced technology is now part of Rapidus’ Innovative Integration for Manufacturing (IIM-1) foundry, an advanced semiconductor fab under construction in Chitose, Hokkaido.

The Japanese semiconductor manufacturer is also partnering with Cadence Design Systems to provide co-optimized AI-driven reference design flows and a broad IP portfolio. The new collaboration will support the Rapidus 2nm gate-all-around (GAA) process and leverage the design and manufacturing benefits from its backside power delivery network (BSPDN) technology to provide design solutions and IP portfolio to customers.


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