Rapidus Raises ¥424.95B for 2nm Chip Push

What did Rapidus just announce?

Rapidus Corporation completed a ¥150 billion ($943 million) funding round from Japan's Information-Technology Promotion Agency (IPA) on June 5, 2026. That brings the company's total stated capital and legal capital surplus to ¥424.95 billion, according to Rapidus's official announcement.

The IPA is an independent administrative agency under Japan's Ministry of Economy, Trade and Industry (METI).

How big is Rapidus's total funding now?

The June 5 round was not the first IPA contribution. Earlier in 2026, Rapidus received ¥100 billion from the IPA alongside private-sector investment. That earlier round totaled ¥167.6 billion from 32 companies, including Canon, Fujitsu, NTT, SoftBank, Sony Group, and the Development Bank of Japan.

Here's how the funding stacks up:

Who founded Rapidus and when?

Rapidus Corporation is a Japanese semiconductor company founded on August 10, 2022, with the goal of developing and manufacturing advanced logic chips. Its founding backers include Toyota, Sony, NTT, NEC, SoftBank, MUFG, Kioxia, and Denso, as reported by Envisioning.

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Japan has not manufactured leading-edge logic chips since the 1990s. Rapidus is a national effort to close that gap.

What is the 2nm chip process Rapidus is using?

Rapidus is building its 2nm process around a gate-all-around (GAA) nanosheet architecture — a transistor design that wraps the gate on all four sides of the channel, enabling better power and performance at small nodes. The company licensed this process technology from IBM and is also working with the Belgian research institute imec.

Rapidus produced working 2nm chip prototypes in 2025 and showcased them to customers in July 2025. This is relevant context for anyone following the Apple-Broadcom chip deal or the broader race for advanced node supply.

Where is the Rapidus fab being built?

The Rapidus fab is called IIM-1 (Innovative Integration for Manufacturing). It is under construction in Chitose, Hokkaido, Japan. The company is targeting pilot production by late 2025 and full-scale mass production by 2027.

That timeline would put Rapidus roughly concurrent with TSMC and Samsung at the 2nm node — an aggressive schedule given Japan's two-decade absence from leading-edge chip manufacturing.

Why is Japan funding Rapidus so heavily?

The sources point to two drivers: geopolitical concern about dependence on Taiwan for advanced chips, and demand from the AI computing boom. Japan's government has backed Rapidus through subsidies since fiscal year 2022 under the "Post-5G Information and Communication Systems Infrastructure Enhancement R&D Project."

The R&D work covers two specific programs: "Research and Development of 2nm-Generation Semiconductor Integration Technology and Short Turnaround Time (TAT) Manufacturing Technology Based on Japan–U.S. Collaboration" and "Development of Chiplet, Package Design and Manufacturing Technology for 2nm-Generation Semiconductors."

For context on how other countries are building out advanced chip supply, see Micron's Hiroshima HBM expansion and the ongoing Nvidia Kyber NVL144 delay that underscores how tight leading-edge supply remains.

What's the competitive backdrop?

Here's what we know so far: Rapidus is entering a market dominated by TSMC and Samsung, both of which are also targeting 2nm production around 2027. Skeptics have questioned whether Rapidus can close a 20-year manufacturing experience gap on that timeline. The IBM partnership provides the process technology; Japan's existing materials and equipment supply chain provides surrounding infrastructure.

Reuters previously reported that Rapidus was in talks with Apple and Google about mass-producing chips, citing Nikkei. Those conversations reflect the kind of customer interest that working prototypes — showcased in July 2025 — are designed to support.

This is also worth watching alongside the Apple foldable iPhone supply story, where chip sourcing decisions are already in motion.

Key Rapidus milestones

• August 10, 2022 — Rapidus Corporation founded in Tokyo
• 2025 — Working 2nm prototypes produced with IBM technology
• July 2025 — Prototypes showcased to customers
• Early 2026 — ¥267.6 billion raised from IPA and 32 private companies
• June 5, 2026 — Additional ¥150 billion closed from IPA; total capital reaches ¥424.95 billion
• Late 2025 (target) — Pilot production at IIM-1 in Chitose, Hokkaido
• 2027 (target) — Full-scale 2nm mass production

Rapidus's next stated goal is to continue raising capital from public and private sources to support the transition from R&D to full-scale 2nm logic semiconductor manufacturing by 2027.