Japan Approves ¥590 Billion Subsidy for Rapidus 2nm Fab

Executive briefing: On April 26, 2024 Japan’s Ministry of Economy, Trade and Industry approved up to ¥590 billion (~$3.8 billion) in subsidies for Rapidus Corporation. The support finances construction of the company’s advanced logic fab in Chitose, Hokkaido, enabling 2 nm pilot production by 2027 and establishing a domestic alternative to overseas foundries.

Key supply signals

• Advanced node roadmap. Rapidus will ramp a pilot line with IBM’s 2 nm process technology, targeting mass production later in the decade.
• Supply-chain buildout. METI’s package includes funding for supplier ecosystems, workforce development, and a new research facility at the Leading-edge Semiconductor Technology Center (LSTC).
• Geographic resilience. The project diversifies advanced-node manufacturing capacity into Japan’s north, balancing exposure to Taiwan and South Korea.

Control alignment

• Strategic sourcing. Evaluate Rapidus as a future supplier for high-assurance workloads requiring geographic diversification.
• Technology integration. Plan for IBM-Rapidus design ecosystem support, including EDA tooling and packaging partnerships in Japan.
• Policy incentives. Track additional METI programs tied to the subsidy that may offset capital costs for downstream partners.

Action checklist

• Engage METI and Rapidus to understand qualification timelines for pilot wafers.
• Model logistics and supply risks for operating in Hokkaido, including power, water, and workforce considerations.
• Coordinate with IBM and Japanese partners on joint R&D opportunities aligned with the LSTC roadmap.

Sources

• METI — Approval of Subsidy for Rapidus Advanced Semiconductor Project (April 26, 2024)
• Rapidus — Statement on METI Subsidy Approval

Zeph Tech incorporates Rapidus developments into semiconductor resilience plans for clients seeking advanced-node diversification.