Japan's Rapidus Secures $1.7 Billion to Challenge TSMC in 2nm Chip Race
Japanese foundry startup Rapidus raises $1.7 billion from government and private investors to fund its goal of mass-producing 2nm semiconductors by 2027. The funding aims to revitalize Japan's chip industry and position the company as an alternative to established giants like TSMC and Samsung.
Japan's fledgling foundry startup Rapidus secures $1.7 billion in a new funding round to support its ambitious goal of mass-producing 2nm semiconductors by 2027. The Japanese government contributes ¥100 billion through the Information-technology Promotion Agency, while 32 private-sector companies including Sony, SoftBank, Canon, and Fujitsu provide the remaining ¥167.6 billion.
Founded in 2022 to revitalize Japan's fading semiconductor industry, Rapidus relies on technological partnerships with IBM and Belgian research organization Imec to develop its advanced manufacturing capabilities. IBM brings valuable 2nm expertise to the table, having been the first to demonstrate such technology in 2021, while Rapidus handles the physical mass production that IBM lacks the facilities to execute.
The company faces an uphill battle against established chipmaking giants TSMC and Samsung, which both begin volume 2nm production in late 2025. However, Rapidus plans to continue raising capital through public and private loans to transition from its current R&D phase into a viable alternative foundry for designers seeking cutting-edge silicon manufacturing.