[News] Japan’s Chip Push in Spotlight: IBM Backs Rapidus as Funding Momentum Builds

As TSMC upgrades its second Kumamoto fab to 3nm, Japan’s homegrown foundry Rapidus is also drawing market attention. Hokkaido Shimbun reports IBM is backing the effort, planning a new office in downtown Chitose this spring to support Rapidus’ next-gen chip ambitions.

IBM maintains a close partnership with Rapidus, providing 2‑nm-class manufacturing expertise and overseeing core semiconductor production systems at the Chitose plant, where prototyping kicked off last April, the report notes. Back in September 2025, Hokkaido Shimbun cited Rapidus CEO Atsuyoshi Koike, naming U.S. firms IBM and chip-design startup Tenstorrent as the lead prospective customers.

IBM’s latest move of setting up a new office, as per the report, is aimed at accelerating local industrial clustering and supporting Rapidus’ target to start 2nm mass production in 2027.

IBM’s New Tech Puts 1.4‑nm Chips in Reach

Notably, as a key partner of Rapidus, IBM is pushing the limits of advanced chipmaking. Following its 2021 milestone of unveiling the world’s first 2‑nm chips, the company—using a new heat-modeling technology co-developed with Synopsys and backed by DARPA—is now targeting the 1.4‑nm node, EE Times reported earlier.

With shrinking transistor nodes and AI driving higher power densities, heat is becoming a critical challenge. EE Times reports that IBM Research, in collaboration with Ansys (now part of Synopsys), developed a machine learning tool under the Thermonat project to model chip thermal behavior down to the atomic level. Trained on vast semiconductor data, the ML software predicts temperatures within 1°C—tens of thousands of times faster than conventional simulation tools, IBM told EE Times.

It is interesting to note that, as per the report, IBM plans to share the technology as 2‑nm production scales—a race already underway at TSMC and Samsung. While partners haven’t been named, the report notes IBM is teaming with Japan’s Rapidus to start 2nm production in 2027 and also works with Samsung as a foundry supplier.

Rapidus Hits Key Milestones

It is worth noting that Rapidus is not only advancing its 2nm roadmap but also firming up its funding base. While the company began 2-nm GAA transistor prototyping at its new fab in the summer of 2025, private investment momentum is accelerating. According to the Sankei Shimbun, total private funding is expected to top ¥160 billion as of Feb. 5—well above Rapidus’ FY2025 target of ¥130 billion.

The report adds that existing shareholders are increasing their stakes, while new capital is flowing in from major Japanese corporates including Canon, Honda, Fujitsu, and Fujifilm Holdings, underscoring broad domestic backing for Rapidus’ push toward mass production.

Rapidus, however, struck a cautious note. The company said while it is exploring a capital increase involving private-sector investors, it stressed that there is nothing to disclose at this stage. Rapidus added that it will make a prompt announcement should any disclosure-worthy developments arise.

Read more

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(Photo credit: Rapidus)