Private companies are hesitant to invest in Rapidus, a domestic semiconductor manufacturer supported by the Japanese government, and investment is limited to 7.3 billion yen.

Rapidus is a semiconductor manufacturer established with the support of the Japanese government, and plans to begin manufacturing prototypes of 2nm semiconductors at a factory built in Chitose, Hokkaido, in April 2025. However, Rapidus has not been successful in attracting private investment, and at the time of writing, it has been reported that private investment has only amounted to 7.3 billion yen.

Japan chipmaker Rapidus slow to attract private-sector investment - Nikkei Asia
https://asia.nikkei.com/Business/Tech/Semiconductors/Japan-chipmaker-Rapidus-slow-to-attract-private-sector-investment

<AI/Semiconductors> Enact new law with 'Rapidus' in mind to attract 50 trillion yen investment | Announcement | News | Liberal Democratic Party
https://www.jimin.jp/news/information/209915.html

Government decides on amendment to 'investment in Rapidus and other companies through independent administrative agencies' | NHK | Semiconductor
https://www3.nhk.or.jp/news/html/20250207/k10014715491000.html

In modern society, securing cutting-edge semiconductors is becoming increasingly important for industrial and national security. With this in mind, Rapidus was founded in 2022 with 7.3 billion yen in investment from major companies such as Toyota, Denso, Sony, NTT, NEC, SoftBank, Kioxia, and Mitsubishi UFJ Bank.

The establishment of Lapidus was backed by the Japanese government, with the Ministry of Economy, Trade and Industry approving a 590 billion yen subsidy for Lapidus in April 2024. In addition, the supplementary budget for fiscal 2024, approved by the Cabinet in November 2024, allocates a budget of approximately 1.5 trillion yen to strengthening the AI and semiconductor industry, including Lapidus.

The Japanese government allocates a supplementary budget of about 1.5 trillion yen to strengthen the chip, quantum computing and AI industries, part of which goes to chip startup Rapidus - GIGAZINE

On February 7, 2025, the ruling Liberal Democratic Party passed a cabinet decision to amend the law with Lapidus in mind, aiming to attract a total of 50 trillion yen in public and private investment in the fields of AI and semiconductors. The bill will allow the government to make investments through the independent administrative institution Information-Technology Promotion Agency (IPA), and also to provide debt guarantees for loans from the private sector.

Despite the government's efforts to attract investment into Lapidus, Nikkei Asia reports that the company is still struggling to secure investment from the private sector. At the time of writing, the government has invested a total of 920 billion yen in Lapidus, and plans to provide 100 billion yen in financial assistance in the 2024 budget, which will be covered by the sale of shares in the Central Bank of Japan's Commerce and Industry Cooperative Association. However, investment from private companies remains at only the 7.3 billion yen paid at the time of establishment.

The government expects to receive an additional 100 billion yen in investment from private companies, and in addition to existing shareholders, Fujitsu and several major banks are considering joining the new fundraising round. However, as one executive at a manufacturing company said, 'We have no choice but to consider investing because the government requested it, but we don't want to actively invest in a company that doesn't even have a prototype,' it is unclear whether the private sector will join forces with the government to invest.

Honjo Tomofumi, a member of the House of Representatives from the opposition Constitutional Democratic Party, argued that the government needs to consider and explain the use of huge amounts of tax money in specific industries and companies. 'I also want Lapidus to succeed, but before providing additional support, the overall picture of the support, basic policy, roadmap, etc. should be made clear .' In response, Prime Minister Ishiba Shigeru acknowledged that the policy should be made clear if tax money is to be invested, but also expressed a sense of crisis about falling behind in the fierce international competition.

Furthermore, Kotaro Tatsumi, a member of the House of Representatives from the opposition Communist Party, questioned the case of Elpida Memory , which was established in the past by merging the DRAM divisions of NEC and Hitachi, but went bankrupt in 2012 despite receiving huge amounts of public funding, and sounded the alarm that Rapidus could follow the same path as Elpida Memory.

One LDP lawmaker commented, 'If the private sector remains skeptical of Lapidus' success, anxiety about current public funding initiatives will only grow.'

Construction and infrastructure at the Lapidus factory in Chitose, Hokkaido, is proceeding at a rapid pace in order to begin trial production in April 2025. To secure the water needed for semiconductor manufacturing, a dedicated water pipe stretching 4.1 km from JR Minami-Chitose Station to the factory was completed in just under two years, whereas it would normally take four years.

RAPIDUS to start up, 'exceptional' rush construction, prototype is the 'first hurdle' to mass production [Hokkaido]: Asahi Shimbun
https://www.asahi.com/articles/AST2L3D7CT2LIIPE00CM.html

'Water-passing ceremony' for water pipes necessary for operation of the Rapidus prototype line Chitose | NHK Hokkaido News
https://www3.nhk.or.jp/sapporo-news/20250228/7000073726.html

In December 2024, the company will install the NXE:3800E mass production EUV exposure tool, which is important for the manufacture of 2nm semiconductors. On February 28, 2025, Atsuo Shimizu, Senior Managing Executive Officer of Rapidus, said that the construction of the factory and the delivery of manufacturing equipment are proceeding as scheduled, and expressed confidence that operations will begin in April.

Rapidus, a Japanese semiconductor manufacturer aiming to produce domestic 2nm semiconductors, begins installation of ASML's mass production compatible EUV exposure tool 'NXE:3800E' - GIGAZINE

Lapidus to start operations in April 'Factory construction and equipment delivery on schedule' - Nikkei Shimbun
https://www.nikkei.com/article/DGXZQOFC287RB0Y5A220C2000000/