Japan strengthens investment to rebuild advanced chip manufacturing

November 24, 2025 /SemiMedia/ — Japan will provide more than 1 trillion yen in additional funding to Rapidus over the next two fiscal years, expanding support for the state-backed chipmaker as it accelerates development of 2-nanometre and next-generation process technologies.

The Ministry of Economy, Trade and Industry plans to allocate about 630 billion yen in fiscal 2026 and another 300 billion yen the following year. In parallel, the Information-technology Promotion Agency will invest over 100 billion yen in fiscal 2025 and more than 150 billion yen in fiscal 2026 to strengthen research and facility construction.

Rapidus outlines roadmap for 2nm and next-generation nodes

Japan also intends to make several hundred billion yen in in-kind contributions during fiscal 2027–28, exchanging government-funded facilities for equity and increasing the state’s shareholding influence in Rapidus.

Rapidus aims to begin volume production of 2-nanometre chips in fiscal 2027 and advance work on a 1.4-nanometre node. The company expects to turn profitable around fiscal 2030 and is targeting a public listing in fiscal 2031. Total investment requirements are projected to exceed 7 trillion yen as capacity expands.

Government increases oversight to secure strategic technology

To support its financing plan, Rapidus is seeking roughly 1 trillion yen from private companies, with about 130 billion yen expected in fiscal 2025. It also expects to secure more than 2 trillion yen in government-guaranteed loans between fiscal 2026 and 2031.

Under the new structure, the government will become the largest shareholder through IPA’s additional investment and will retain a golden share with veto authority over key decisions. Any transfer of shares or technology-related agreements will require state approval. Should Rapidus undergo restructuring, the government will adjust the class of its holdings and maintain more than two-thirds voting rights to safeguard strategic semiconductor assets.