The Japanese government is considering investing in Japanese wafer foundry Rapidus, and it is reported that as a condition of the investment, the Japanese government will require holding Rapidus' "golden shares".
NHK reported on the 14th that the Ministry of Economy, Trade and Industry (Japanese government) is considering investing in Rapidus, and as a condition for the investment, the Japanese government will require holding "golden shares" that can exercise veto power over important operational matters.
In order to invest in Rapidus, Japan has passed an amendment bill to provide assistance to the semiconductor industry at the regular Diet held a few days ago, allowing the "Independent Administrative Agency Information Processing Promotion Agency (IPA)" under the Ministry of Economy, Trade and Industry to invest in enterprises. The Japanese government plans to invest 100 billion yen in Rapidus this year, but in order to avoid economic security risks such as acquisition by foreign companies and technology outflow, the Japanese government will require holding Rapidus "golden shares".
"Golden shares (veto shares)" have more powerful authority than general voting rights. Even if you only hold 1 share, you can veto the appointment/dismissal of directors or shareholder resolutions. One of the key reasons why the Trump administration in the United States recently agreed to Nippon Steel's acquisition of US Steel was that US Steel would issue 1 golden share to the US government. Among Japanese companies, one of the cases where the Japanese government holds a golden share is the oil exploration giant INPEX.
In addition to the above-mentioned 100 billion yen in funding, the Japanese government has decided to provide Rapidus with approximately 1.72 trillion yen in aid.
Rapidus aims to mass-produce 2-nanometer (nm) chips in 2027, and the trial production line has been launched in April. According to Japanese media, Rapidus is scheduled to hold an event in Chitose City, Hokkaido, where the factory is located, on July 18 to report the trial production situation to business partners. The main performance data of the trial product is expected to be clear around September, and companies interested in investing in Rapidus may make a final judgment based on the data results.
In order to realize the plan of mass production of 2-nanometer chips in 2027, Rapidus estimates that it will need about 5 trillion yen in funds. In addition to the assistance from the Japanese government, Rapidus's existing shareholders have decided to make additional investments in Rapidus, and Fujitsu, Sumitomo Mitsui Bank, Mizuho Bank, and Japan Development Bank have also expressed their willingness to invest. Japanese automaker Honda has also been reported to be considering investing in Rapidus to ensure the purchase of advanced chips.
Rapidus was established in August 2022 and was jointly funded by eight Japanese companies including Toyota Motor, Sony, NTT, NEC, SoftBank, Denso, Kioxia, and Mitsubishi UFJ.
Rapidus President Junyoshi Koike said in an interview with Japanese media in early April that as a potential customer for wafer foundry, "we are negotiating with 40-50 companies." Junyoshi Koike did not mention the specific company names of potential customers, but said that "we are negotiating with the American technology giant called GAFAM and the startup that designs AI chips."
In the most advanced foundry sector, Taiwan's TSMC dominates the market and dominates Nvidia's AI chip orders, but Koike said that "American customers are increasingly aware of the need to find a second supplier."
Rapidus begins advanced chip manufacturing in Japan
Only three companies in the world can mass-produce state-of-the-art computer chips with incredible precision. Last month, a Japanese startup took the first step toward becoming the fourth. On April 1, Rapidus reached a key milestone when it launched and tested its pilot line of 2-nanometer node chips using a recipe developed in collaboration with IBM (based on the latter's nanosheet transistor structure).
Rapidus told IEEE Spectrum that the more than 200 cutting-edge equipment installed at its new fab in Chitose is now ready for operation, including the key piece of equipment, a state-of-the-art extreme ultraviolet (EUV) lithography system worth more than $300 million.
"We broke ground in September 2023," said Henri Richard, president of Rapidus Design Solutions, which was founded in Santa Clara, Silicon Valley, last April and is responsible for U.S. business development. "Amazingly, in early Q2 2025, we completed the first exposure of the EUV lithography system and are now ready to start pilot production."
Company Overview
Test chip timing
Rapidus CEO said in April that the first test chips could be produced in July. The company is in talks with a variety of potential customers, including large enterprises and AI startups.
Support and funding
Rapidus was founded in August 2020 and is supported by a consortium of eight Japanese companies, but government subsidies (1.72 trillion yen) are more critical. Private investment is only 7.3 billion yen, raising concerns about the future, and mass production targets require about 5 trillion yen.
Historical comparison
Similar to TSMC's early days, the Japanese government supports Rapidus to revitalize the semiconductor industry. Private enterprises are on the sidelines, and government support is a key factor in motivating the private sector.
Technology Strategy
Production strategy
Rapidus uses a single-wafer process (non-traditional batch production) for customized chips and specific applications. This includes a revolutionary grid transfer system to avoid jams caused by machine failures.
DMCO application
The company applies design and manufacturing collaborative optimization (DMCO) to optimize parameters through AI analysis of production data (such as temperature, gas density), improve design speed and yield, and shorten customer time to market.
Expert evaluation
Experts believe that new technologies may accelerate yield improvement, but there are initial risks (such as delivery delays). The demand for AI chips is huge (power consumption is reduced by more than 30%), which may exceed the existing foundry capacity, bringing opportunities to Rapidus.
Source: Content from moneyDJ
