Japanese Government to Allocate Additional $941 Million to Rapidus

en.Wedoany.com Reported - Japanese chipmaker Rapidus is set to receive an additional ¥150 billion ($941 million) in government funding to bolster the nation's semiconductor industry. According to sources cited by Bloomberg, Japan's Ministry of Economy, Trade and Industry (Meti) plans to request these funds and include them in the fiscal year 2027 budget. This move aims to reduce Japan's reliance on overseas suppliers such as Taiwan Semiconductor Manufacturing Company (TSMC).

Rapidus, founded in 2022, is a state-backed startup with the goal of beginning mass production of advanced 2-nanometer chips by 2027. The Japanese government considers establishing domestic semiconductor manufacturing capabilities crucial to national security and technological independence, as semiconductors are key components in fields such as artificial intelligence, robotics, and quantum computing. In competing with major players like TSMC, Samsung Electronics, and Intel, Rapidus is positioned as a core part of Japan's ambitions to revitalize its semiconductor manufacturing industry.

There have also been new developments in international cooperation. In June 2026, Rapidus signed a Memorandum of Understanding (MoU) with the UK Semiconductor Centre (UKSC) aimed at fostering collaboration on future semiconductor manufacturing projects. The agreement is part of broader efforts to strengthen technological ties between Japan and the UK. UKSC focuses on developing the UK's semiconductor ecosystem and advancing its growth strategy and technology partnerships in advanced hardware and artificial intelligence. The signing of the MoU followed technology talks held earlier this year between Japanese Prime Minister Takaichi Sanae and then-UK Prime Minister Keir Starmer.

In terms of financing, Rapidus recently completed a ¥150 billion ($936 million) funding round from Japan's Information-technology Promotion Agency (IPA). Earlier this year, the company also received ¥100 billion in investment from IPA, as well as ¥167.6 billion in private investment from 32 companies, including Canon, Fujitsu, Development Bank of Japan, SoftBank, NTT, and Sony Group.