Japan to Invest Additional 400 Billion Yen in Rapidus to Support Private Fundraising

Plans to borrow 2 trillion yen from banks to expand production lines

The Japanese government is pursuing a plan to provide an additional 400 billion yen in equity funding to Rapidus, a next-generation semiconductor company, by fiscal 2029 to support its efforts to raise private-sector funds.

Atsuyoshi Koike, CEO of Rapidus, speaks with Reuters at the company's headquarters last August. Photo by Reuters-Yonhap News.

According to the Yomiuri Shimbun, Kyodo News and other media outlets on the 20th, Japan's Ministry of Economy, Trade and Industry proposed the previous day at a subcommittee meeting of the Fiscal System Council, an advisory body to the Ministry of Finance, that the government provide Rapidus with a total of 400 billion yen (about 3.36 trillion won) in additional equity funding over fiscal 2027-2029.

The government's current equity investment stands at 250 billion yen as of fiscal 2026. It plans to invest 150 billion yen in fiscal 2027, 150 billion yen in fiscal 2028 and 100 billion yen in fiscal 2029. If the plan proceeds as proposed, the total investment will rise to 650 billion yen.

The Ministry of Economy, Trade and Industry said the additional investment is intended to support Rapidus in raising private-sector funds. The government said, "(Rapidus) needs to maintain a certain level of equity capital to obtain loans from private financial institutions," adding that "the outlook for returns on investment is also improving somewhat."

Rapidus aims to begin mass production of advanced semiconductors using a 2-nanometer (nm, one-billionth of a meter) process starting in fiscal 2027 at its plant in Chitose, Hokkaido. The company plans to borrow 2 trillion yen (about 16.79 trillion won) from major banks and others to expand its production lines.

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