Japanese semiconductor startup Rapidus has secured 267.6 billion yen ($1.7 billion) in funding to accelerate its 2 nm chip production plans. The funding includes 100 billion yen ($641 million) from the Japanese government through the Information-Technology Promotion Agency and 167.6 billion yen ($1 billion) from 32 private-sector investors including Canon, Sony, Toyota, and Honda.

This investment follows Rapidus's selection last November as Japan's designated advanced chip manufacturer. The company has already taped out a 2 nm GAA test chip using ASML EUV tools and claims a transistor density of 237 MTr/mm² that could match TSMC's N2 process. Rapidus plans to begin mass production at its IIM-1 fab in Chitose, Hokkaido by 2027, targeting 25,000 wafers per month.

The funding brings Rapidus's total capital to just under 275 billion yen ($1.76 billion), combining this round with the 7.3 billion yen raised at founding. The company says it will continue raising money through both public and private sources as it works toward its 2 nm production goals, positioning itself as Japan's answer to global semiconductor leaders.