[News] Rapidus Reportedly Secures ¥167.6B Private Funding; 60 Clients in Talks, 10 Receive Initial Quotes

Japan’s Rapidus is targeting mass production of 2nm chips in the second half of 2027, with interest from potential customers reportedly gaining momentum. According to Japanese outlet MONOist, President and CEO Atsuyoshi Koike said the company is currently in discussions with more than 60 firms, primarily in high-performance computing (HPC), AI, and edge computing. Around 10 of these companies have received preliminary price quotations, and Rapidus is preparing to license its process design kit (PDK) to support their chip design efforts.

The report further notes that most of the more than 60 companies in talks are overseas firms. Similarly, among the roughly 10 companies that have received preliminary price quotations, Koike said only a handful are domestic.

¥267.6B Funding Round Expands Investor Base, Government Takes Top Stake

Alongside growing customer interest, Rapidus is also attracting stronger financial support. According to Nikkei xTECH, the company announced it had secured a total of ¥267.6 billion in combined public and private funding. Of that amount, 32 private-sector firms contributed ¥167.6 billion, exceeding Rapidus’s fiscal 2025 private fundraising target of ¥130 billion. Although the company has largely secured the private funding required for 2nm semiconductor mass production in 2027, many investors remain in a wait-and-see mode, Nikkei xTECH notes.

The report adds that when Rapidus was founded in August 2022, eight companies—Toyota Motor Corporation, NTT, Sony Group, SoftBank, NEC, Denso, Kioxia, and Mitsubishi UFJ Bank—collectively invested ¥7.3 billion. In the latest funding round, all eight original backers increased their stakes, while 24 additional companies joined as new investors. The new participants include Argo Graphics, Ushio, Canon, Kyocera, JX Advanced Metals, Seiko Epson, and Dai Nippon Printing (DNP), among others. Bloomberg notes that while the company did not disclose the size of individual investments, it said the latest investors include potential customers and strategic partners.

Among the private investors, SoftBank and Sony Group are believed to have emerged as the largest shareholders. In addition to private-sector backing, Nikkei xTECH highlights that the government invested ¥100 billion through the Information-technology Promotion Agency (IPA), making it Rapidus’s largest shareholder with an 11.5% voting stake.

Building on growing funding and customer traction, Rapidus is outlining broad expansion plans to narrow the gap with leading foundries. According to Nikkei and Yomiuri Shimbun, while its first Chitose fab has yet to begin mass production, a second facility could break ground as early as fiscal 2027, targeting 1.4nm output in 2029. Nikkei also notes the company aims for an IPO in fiscal 2031.

Read more

• [News] Japan’s Chip Push in Spotlight: IBM Backs Rapidus as Funding Momentum Builds
• [News] JX Advanced Metals Reportedly Plans ¥5B Rapidus Investment, Plus Key Materials Supply

(Photo credit: Rapidus)