Rapidus raises $1.7B as Japan doubles down on domestic chips
What's the deal? Japan's Rapidus Corp.Dealroom has a profile for this one. Try Dealroom → has secured ¥267.6 billion ($1.7 billion) in funding from the government and 32 private companies in its push for domestic chipmaking. The state-backed venture aims to mass produce 2nm chips by March 2028.
The government invested ¥100 billion ($640 million) and earmarked another ¥150 billion for the coming fiscal year. Private investment of ¥167.6 billion ($1.07 billion) came from SonyDealroom has a profile for this one. Try Dealroom →, ToyotaDealroom has a profile for this one. Try Dealroom →, SoftBank, NTTDealroom has a profile for this one. Try Dealroom →, and CanonDealroom has a profile for this one. Try Dealroom → — exceeding the government's ¥130 billion target.
Chief executive Atsuyoshi Koike said Rapidus is in talks with more than 60 companies seeking chips for AI and robotics. "Since the start of the year, customers' demands for cutting-edge chips have surged," he said.
Why now? Geopolitical tensions and the AI boom have made advanced chips strategically vital. Prime minister Sanae Takaichi has designated domestic chip production a pillar of economic security.
Japan's economy ministry is nearly quadrupling its chip and AI budget to about ¥1.23 trillion for the fiscal year starting in April.
What could go wrong? The funding structure has raised governance concerns. While the government will hold only about 10% of voting shares initially, it can convert its stake to seize majority control if Rapidus hits financial trouble.
It will also hold "golden shares" granting veto power over major decisions like chief executive appointments and mergers. "There are many cases where joint public-private investment has led to an irresponsible governance structure," Keio University professor Takeo Doi told NikkeiDealroom has a profile for this one. Try Dealroom →.
The signal: Japan is shifting toward aggressive industrial policy to regain its footing in the global chip race. The private sector's willingness to exceed funding targets suggests growing confidence in Rapidus — despite scepticism about its ambitious timeline.
Sources:
Bloomberg
Morningstar
The Asia Business Daily
The Straits Times
B.S.
