Wedoany.com Report on Feb 7th, The Japanese semiconductor startup Rapidus has recently garnered widespread attention in the capital markets, with its private investment exceeding 160 billion yen (approximately $1.019 billion), surpassing the company's original financing target for the fiscal year 2025. According to market sources, American tech giant IBM is planning to join the ranks of Japanese companies like SoftBank Group and Sony Group in investing in this highly-anticipated new semiconductor manufacturer, supporting its R&D and production layout in the field of advanced processes.
Addressing speculation regarding investment trends, Rapidus issued a statement on February 5, stating: "Although recent media reports have indicated that several companies are interested in investing in our company, this information did not originate from our official channels. Currently, we are indeed considering raising additional capital through private placements, but as of now, there are no specific matters requiring formal disclosure. Should any disclosable facts arise in the future, we will promptly release the relevant information to the public."
Founded in 2022, Rapidus carries the important mission of reducing Japan's external dependence in semiconductor manufacturing, especially against the backdrop of complex global geopolitical situations and the increasing emphasis on supply chain autonomy and control. The company plans to achieve mass production of 2-nanometer chips by 2027, aiming to secure a place in the global competition for high-end semiconductor technology. According to the latest disclosed financial data, Rapidus successfully raised 70 billion yen and 90 billion yen in 2023 and 2024, respectively. Meanwhile, the Japanese government has announced it will provide substantial subsidies of up to 330 billion yen, primarily to support the major project of building an advanced process pilot production line in Chitose City, Hokkaido.
Notably, IBM is engaged in in-depth cooperation negotiations with Rapidus and is expected to become a key technology partner. IBM plans to provide Rapidus with expertise in 2-nanometer transistor technology and jointly advance the co-development of manufacturing processes with its internal R&D team. This collaboration will not only significantly accelerate Rapidus's R&D progress in advanced processes but also enable IBM to industrialize its cutting-edge chip designs without investing in building its own wafer fabrication plants.
With the Japanese government rolling out a semiconductor industry support plan exceeding 7 trillion yen, Rapidus's rapid rise is seen as a significant symbol of the recovery of Japan's semiconductor industry. Although the company still faces multiple challenges, including capacity construction, yield improvement, a shortage of professional talent, and fierce competition from international giants like Samsung and Intel, the private financing exceeding $1 billion fully reflects market investors' confidence in its development prospects. Industry analysts predict that if Rapidus can achieve its technological milestones and capacity targets as scheduled, the company's valuation could reach $5 to $10 billion by 2028, becoming an emerging force that cannot be ignored in the global semiconductor industry landscape.
