March 2, 2026 /SemiMedia/ — Japan plans to invest an additional 250 billion yen ($1.6 billion) in Rapidus over the next two fiscal years, bringing the country closer to its broader support target of 3 trillion yen for the domestic advanced chip project.

The funding is intended to help Rapidus move toward mass production of 2-nanometer logic chips and strengthen Japan’s position in leading-edge semiconductor manufacturing.

Tomoshige Nambu, an official at Japan’s Ministry of Economy, Trade and Industry (METI), said on Feb. 27 that under the new structure the government will initially hold about 10% of Rapidus’ voting shares, with most of its stake issued as non-voting stock.

However, the government has built in safeguards. If Rapidus faces financial stress, Tokyo can convert the non-voting shares into voting shares and increase its control. The state will also hold a “golden share” that gives it veto power over major corporate decisions.

Separately, METI plans to sharply raise support for advanced semiconductors and AI research in the fiscal year starting in April, with the budget set to rise nearly fourfold to about 1.23 trillion yen ($7.9 billion). The move comes as geopolitical tensions and generative AI demand highlight the strategic value of advanced chips.

In addition to government backing, Rapidus has secured 167.6 billion yen from roughly 30 private-sector companies to support its roadmap toward volume production by March 2028.