Rapidus Emerges as Sole Applicant for Japan’s $635M Semiconductor Aid, Cementing Role in Chipmaking Revival

Rapidus Corp. has become the sole applicant for the Japanese government’s latest semiconductor manufacturing aid program, marking a pivotal moment in Japan’s efforts to reclaim its position as a global semiconductor leader.

The Ministry of Economy, Trade and Industry confirmed that applications closed on October 2, 2025, with only Rapidus submitting a proposal for the program’s up to 100 billion yen (approximately $635 million) funding round. If approved by an expert panel, the investment will be channeled through the government-affiliated Information-technology Promotion Agency (IPA) .

Note : The funding is contingent upon Rapidus issuing a ‘golden share’ to the IPA, a strategic mechanism granting the government veto power over key business decisions. This arrangement is designed to safeguard national interests as Japan races to establish a resilient, domestically-controlled semiconductor supply chain .

Background: Japan’s Semiconductor Ambitions

Founded in 2022 through a partnership between the Japanese government and eight major corporations—including Toyota, Sony, NTT, and SoftBank—Rapidus is spearheading Japan’s bid to mass-produce cutting-edge 2-nanometer (nm) logic chips by 2027. The company’s flagship production plant in Chitose, Hokkaido, is set to become a cornerstone of this effort, targeting technologies essential for artificial intelligence, digitalization, and autonomous vehicles .

Japan’s motivation is clear: with global supply chains rattled by geopolitical tensions and the COVID-19 pandemic, ensuring a domestic supply of advanced chips is now a matter of economic security. Once a dominant force in global chipmaking, Japan has found itself playing catch-up as production leadership shifted to Taiwan and South Korea.

Key Funding Details and Strategic Safeguards

The 100 billion yen investment is part of a broader government strategy, with total public commitments to Rapidus reaching as high as 1.72 trillion yen ($11.46 billion) in recent years . The government’s move to require a golden share reflects an intent to balance rapid innovation with oversight, ensuring that taxpayer-backed innovation aligns with Japan’s strategic priorities.

Industry observers have highlighted the golden share as a rare but significant measure, granting the government veto authority over any major corporate actions, such as mergers, asset sales, or changes in business direction. This structure aims to protect Japan’s critical semiconductor assets from foreign acquisition or strategic missteps .

Industry Reactions and Next Steps

Public commentary remains limited as the news is still developing, but Japanese industry experts are closely watching the government’s ongoing commitment to domestic chip production. The expert panel’s review of Rapidus’ business plan will be decisive in unlocking the next phase of government funding and could set a precedent for future public-private partnerships in high-tech sectors.

As the sole applicant, Rapidus stands at the forefront of Japan’s semiconductor revival. Its ability to deliver on bold manufacturing targets by 2027 will be crucial not only for the company’s future, but also for Japan’s ambitions to reestablish itself as a global chipmaking powerhouse.

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