Japanese chip upstart Rapidus has only worked on its 2nm wafer fab in Hokkaido for a year, yet the company is reportedly already seeking ¥100 billion ($699 million) in additional funding for the project.

Rapidus, which was founded in 2022 as an effort to strengthen Japan's domestic chipmaking industry, is looking to both current and new investors for the extra funds, according to Bloomberg's communications with unnamed insiders. The ¥100 billion was reportedly conceived of as a bank loan, but the company allegedly decided to seek new investors due to how far Rapidus is from commercialization.

In addition to the ¥100 billion being sought from private investors, the Japanese government has promised a considerable pot of money to aid in its endeavor, with the Japan Times reporting in May that the government had ¥920 billion ($6.4 billion) earmarked for the project.

"The government will consider extra aid (to Rapidus) depending on the situation," Japanese industry minister Ken Saito said during a May visit to the Rapidus construction site.

Along with 2nm development support from IBM and cash from the government, Toyota, Sony, NTT, SoftBank, Kioxia, Denso, NEC, and MUFG Bank hooked up to start the company with a joint investment of ¥73 billion.

Rapidus told The Register earlier in April that it was on track to begin 2nm volume production at the IIM-1 plant in Hokkaido by 2027. However, we were told pilot production was planned to begin in 2026, when several months prior the intent was to start pilot production in early 2025.

We asked Rapidus about the fresh fab funding, but hadn't heard back at the time of publication.

Rapidus's quest to bring 2nm chip development to the fab comes as Intel's 20A process, equivalent to 2nm, was abandoned by the company's fabrication arm in favor of 18A, equivalent to 1.8nm. Those 1.8nm chips have so far failed to impress.

Whether the need for an additional ¥100 billion so early in the process will reassure Rapidus investors is an open question. ®

https://www.theregister.com//2024/09/09/rapidus_government_funding/