Chip manufacturer Rapidus is to receive an additional Y150bn ($941m) from the Japanese government in a move to strengthen the country’s semiconductor sector, reported Bloomberg.
The funding is aimed at decreasing Japan’s dependence on overseas suppliers such as Taiwan Semiconductor Manufacturing Co (TSMC).
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The Ministry of Economy, Trade and Industry (Meti) intends to request the funds for inclusion in its fiscal 2027 budget, according to an individual familiar with the matter.
Founded in 2022, Rapidus is a state-supported venture that aims to begin producing advanced 2nm chips by 2027.
The Japanese government has indicated that establishing a homegrown capacity for semiconductors, critical components in AI, robotics, and quantum computing, is important for Japan’s national security and technological independence.
In competing with large players such as TSMC, Samsung Electronics, and Intel, Rapidus is positioned as a central part of Japan’s ambitions to reinvigorate its semiconductor manufacturing sector.
Recent developments also highlight growing international collaboration.
In June 2026, Rapidus signed a memorandum of understanding (MoU) with the UK Semiconductor Centre (UKSC).
The agreement is intended to promote cooperation on future semiconductor manufacturing projects, against a backdrop of broader efforts to strengthen technology links between Japan and the UK.
The UKSC focuses on the development of the UK’s semiconductor ecosystem and on advancing its strategy for growth and technical partnerships in advanced hardware and AI.
The signing of the MoU followed technology talks earlier in the year between Japanese Prime Minister Sanae Takaichi and the then UK Prime Minister Keir Starmer.
On the financial front, Rapidus recently finalised a funding round of Y150bn ($936m) from the Information-Technology Promotion Agency (IPA), Japan.
Earlier in the year, the company had also received a Y100bn investment from the IPA, along with Y167.6bn in private sector contributions from 32 firms, including Canon, Fujitsu, Development Bank of Japan, SoftBank, NTT, and Sony Group.
