The Japanese government and private sector have committed approximately 2.4 trillion won ($1.7 billion) in new investment to state-backed semiconductor firm Rapidus, as the nation intensifies efforts to reclaim its lost dominance in the global chip industry.
Economy, Trade and Industry Minister Ryosei Akazawa announced at a press conference on the 27th that 32 Japanese private companies have invested a total of 167.6 billion yen (approximately 1.5 trillion won) in Rapidus, according to Nikkei. The figure exceeds the initially projected 130 billion yen (approximately 1.2 trillion won). Separately, the Ministry of Economy, Trade and Industry invested 100 billion yen (approximately 920 billion won) in Rapidus through the Information-technology Promotion Agency, an independent administrative agency.
The Japanese government plans to provide an additional 150 billion yen (approximately 1.4 trillion won) to Rapidus through its fiscal 2026 budget (April 2026 to March 2027). Major Japanese banks are also considering extending 2 trillion yen (approximately 18 trillion won) in loans to Rapidus after April 2027.
To date, the Japanese government has injected 1.7 trillion yen (approximately 16 trillion won) into Rapidus for research and development costs. Nikkei reported that total support, including equity investments and subsidies, is projected to reach 3 trillion yen (approximately 28 trillion won).
Despite holding a dominant ownership stake, the Japanese government will refrain from exercising voting rights to allow Rapidus swift decision-making. Government voting shares will be limited to 11.5%, with remaining shares held as non-voting stock. Instead, the government will retain a "golden share" that grants veto power over critical matters with just a single share, designed to prevent scenarios such as acquisition by foreign companies. The government may also convert non-voting shares to voting shares if management conditions deteriorate.
The new investments and government support are expected to ease Rapidus's funding constraints. Previous private sector investment in Rapidus totaled just 7.3 billion yen (approximately 67 billion won). However, Nikkei reported that even with the additional capital, Rapidus still needs another 2 trillion yen for smooth operations.
Rapidus was established in 2022 through joint investment by eight major Japanese companies, including Toyota, Sony, and SoftBank, to strengthen Japan's semiconductor manufacturing capabilities. Regarded as a symbolic project for Japan's semiconductor revival, Rapidus has begun operating a pilot production line at its Chitose factory in Hokkaido. The company plans to begin mass production of 2-nanometer chips after October next year. Nikkei recently reported that Rapidus aims to begin producing 1.4-nanometer chips, more advanced than 2-nanometer, by 2029.
The global semiconductor industry is closely watching Japan's aggressive investment push. Japan once dominated the semiconductor market, capturing roughly half of global chip sales in the 1980s and 1990s and controlling memory and manufacturing equipment markets. However, the country's market share steadily declined due to price competition and now stands at around 10%. Japan still maintains strength in equipment and materials. Its global market share in high-purity photoresist reaches 95%, an unrivaled position.