Japan invested an additional $4 billion in the Rapidus project to develop a 2‑nm process technology for AI chips

Japan invests in semiconductor development: new subsidies for Rapidus

The Ministry of Economy, Trade and Industry (METI) announced an additional allocation of ¥631.5 billion (≈ $3.96 million). These funds are intended to accelerate research and development at the startup company Rapidus, a semiconductor manufacturer.

How the financial landscape is changing
- The total amount of public investment in Rapidus for the current fiscal year (through March 2027) now stands at ¥2.35 trillion (≈ $15 million).

- In February, the startup raised private investments of about ¥160 billion (≈ $1 million) and government contributions of ¥250 billion (≈ $1.57 million).

Government objectives
The funding is part of a program to increase domestic production of advanced semiconductors and strengthen semiconductor supply chains. Prime Minister Sanae Takachichi emphasized the importance of investments in areas that are critically important for national security.

Support from NEDO
The ministry also reported that NEDO (New Energy and Industrial Technology Development Organization) will support projects by Fujitsu and IBM Japan. These companies are developing semiconductors that Rapidus will use to produce energy‑efficient AI chips.

Rapidus plans
The company intends to launch serial production of 2‑nm chips at a new plant in Hokkaido in the second half of 2027.