Japan moves to inject an additional 3.4 trillion yen into Rapidus Corporation, bolstering 2-nm mass production

【The Financial News, Tokyo—Correspondent Seo Hye-jin】 Japan’s government is moving to make an additional equity contribution of 400 billion yen (about 3.388 trillion won) to advanced semiconductor maker Rapidus Corporation over fiscal 2027–2029. The plan is to bolster its equity base ahead of mass production of 2-nanometer (nm, one-billionth of a meter) semiconductors next year and support large-scale private-sector lending. If carried out as planned, the Japanese government’s cumulative contributions will rise to 650 billion yen (about 5.5055 trillion won).
According to the Nikkei and the Yomiuri Shimbun on the 20th, Japan’s Ministry of Economy, Trade and Industry (METI) announced the previous day that it planned to seek the contributions at a subcommittee meeting of the Fiscal System Council, an advisory body to the finance minister.
METI has already included 150 billion yen in its initial budget request for fiscal 2027. It plans to seek an additional 150 billion yen for fiscal 2028 and 100 billion yen for fiscal 2029. The government contributed a total of 250 billion yen to Rapidus Corporation through the Special Account for Energy Measures in fiscal 2025–2026.
Rapidus Corporation aims to begin mass production of 2-nanometer semiconductors at its plant in Chitose, Hokkaido, from fiscal 2027. It plans to borrow 2 trillion yen (about 16.94 trillion won) from major banks and others to expand its production lines and for other purposes.
A certain level of equity capital is needed to raise funds from private financial institutions. The government’s additional contribution is intended both to provide funds directly for mass production and to establish the financial base needed to secure bank loans. Rapidus Corporation is also considering an initial public offering (IPO) around fiscal 2031.
The contributions for fiscal 2027–2029 will be made through the government’s “industrial investment” program. Industrial investment is a fiscal investment and loan method of investing in private companies, funded by dividends from government-held shares and other sources.
However, the full amount of the additional contributions has not yet been finalized. METI has only stated its intention to request that the funds be included in future budgets.
There were also calls to scrutinize the project’s prospects and the likelihood of recovering the investment, given the growing scale of government contributions. The Fiscal System Council said that day, “It is important to continuously assess profitability.”
One view raised by a committee member in attendance was that “there is a need to formally assess the policy necessity and profitability and discuss each year whether to make industrial investments.” The point was that, separate from the need to support domestic production of advanced semiconductors, the government should review the project’s progress and profitability each year before deciding whether to make a contribution.


[email protected] Seo Hye-jin Reporter