Japan Government to Become Top Shareholder in Chipmaker Rapidus

By Yang Jie

Japan's government is tightening its grip on the nation's fledgling semiconductor industry, unveiling a funding structure under which it could take a stake of over 50% in Rapidus, the country's bet on advanced chipmaking.

Ryosei Akazawa, Japan's minister of economy, trade and industry, said Friday that the government has invested 100 billion yen, or about $640 million, in the chip maker. It has voting rights of 11.5% but with the option to boost that to more than 50% if Rapidus runs into any financial or operational problems.

The initial capital injection will be deployed immediately, with an additional 150 billion yen earmarked in the upcoming budget, bringing the government's total equity commitment in Rapidus to 250 billion yen for the 2026 fiscal year.

The move signals a shift toward a more aggressive industrial policy as Japan pushes to regain its footing in the global silicon arms race, industry analysts said.

Japan has pinned its hopes on Rapidus, a state-backed venture established in 2022 with the mission of developing home-grown advanced chipmaking capacity. It has also been courting foreign companies, seeking to bring their expertise into the domestic ecosystem.

Earlier this month, Taiwan Semiconductor Manufacturing Co. finalized an agreement to produce 3-nanometer chips at its second Japanese facility in Kumamoto, an upgrade from previous plans for more mature nodes.

That was a major leap for Japan, which doesn't yet have capacity to mass produce advanced chips essential for artificial intelligence.

The government has been pushing to change that, backing projects like the Kumamoto expansion, which provides a high-volume manufacturing baseline for the country. Rapidus meanwhile is focused on the even more ambitious goal of making 2-nanometer logic chips.

To further safeguard its investment in the state-backed venture, the government will hold a so-called "golden share" in Rapidus, granting it veto power over board decisions to protect against economic security risks and foreign influence.

A combined $1.07 billion investment pledge in Rapidus from 32 companies reflects renewed interest from the private sector too.

The investment pool, which includes contributions from a broad range of domestic industry leaders, surpassed the government's initial projections for private funding.

The capital commitment "exceeds the initial target of 130 billion yen," a sign that "expectations for the project are clearly mounting", Akazawa said.

Write to Yang Jie at jie.yang@wsj.com

(END) Dow Jones Newswires

February 26, 2026 23:25 ET (04:25 GMT)