Japan’s Ministry of Economy, Trade and Industry approved ¥631.5 billion ($3.97 billion) in additional subsidies for state-backed foundry Rapidus. This funding accelerates the development of 2-nanometer chips to compete with industry leader TSMC.
The capital will establish front-end and back-end processing facilities while helping secure initial customers like Fujitsu. Total government investment in the project now reaches nearly ¥2.6 trillion ($16 billion).
Japan views Rapidus as vital for national security and technological independence in AI and quantum computing. The company aims to begin trial production by late 2026. Full-scale mass production is scheduled to commence in 2027.