[News] Japan Reportedly Demands Golden Share in Rapidus as Condition for JPY 100 Billion Investment

According to a report from MoneyDJ, citing NHK, Japan’s Ministry of Economy, Trade and Industry (METI) is considering additional investment in domestic foundry Rapidus. As a condition, the government is reportedly planning to require a “golden share” in the company—a special type of share that grants veto power over key management decisions.

The report notes that a revised law enabling the government to invest in companies like Rapidus through an independent administrative agency was passed during the last ordinary Diet session. Under this framework, the government plans to invest JPY 100 billion in Rapidus during the current fiscal year, as the report highlights.

NHK also notes that, regarding the investment, the government will assess whether Rapidus can commercialize domestic production of advanced semiconductors in the latter half of the 2020s and whether it can secure significant private-sector funding. This policy is expected to be formally adopted in August, in line with the law’s enforcement, the report adds.

MoneyDJ notes that, in addition to the planned JPY 100 billion investment, the Japanese government has already decided to provide approximately JPY 1.72 trillion in support to Rapidus.

Rapidus officially launched its 2nm pilot production line on April 1, with the goal of beginning mass production in 2027, as noted by MoneyDJ, citing Nikkei. According to Hokkaido Shimbun, the company plans to hold a briefing on July 18 at its factory in Chitose, Hokkaido, to provide updates on the prototype line.

Rapidus Working to Secure Funding and Expand Client Base

As noted by MoneyDJ, Rapidus estimates it will need around JPY 5 trillion to reach its goal of mass-producing 2nm chips by 2027. Aside from government support, existing shareholders have committed to further investment.

In addition, MoneyDJ states that Fujitsu, Sumitomo Mitsui Banking Corporation, Mizuho Bank, and the Development Bank of Japan have all expressed interest in investing. Meanwhile, MoneyDJ, citing Nikkei, also mentions that Honda is reportedly considering investing in Rapidus to secure access to advanced semiconductor supply.

Beyond funding, Rapidus is actively engaging with potential customers. According to a company press release, it is in talks with a wide range of prospective clients, from major global firms to emerging AI startups. While no specific names were disclosed, the company cited GAFAM as examples of the types of firms it is currently in discussions with.

Read more

• [News] Honda Reportedly Plans Rapidus Investment to Secure Advanced Chips Beyond TSMC Deal
• [News] Fujitsu Taps TSMC for 2nm CPU, But Flags Rapidus as Key to Supply Chain Diversification

(Photo credit: Rapidus)