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The company is backed by several Japanese companies, including giants such as Toyota and Sony , as well as private financing institutions. Aside from this, the Japanese government has also invested heavily in the startup through subsidies and direct fiscal support. Rapidus has already received a commitment of JPY 1.7 trillion, or more than US$10 billion, with several hundred billion Yen expected to be infused into the company in the coming months.
Despite these massive inflows, Rapidus is still facing an uphill battle as it competes with established fabs like TSMC, Samsung, and Intel. Intel has already started production of 18A , its 2-nm class node, while TSMC is also moving up plans to output its latest node at its Arizona site due to strong AI data center demand. On the other hand, the Japanese chip maker is only expected to begin 2-nm mass production in the latter half of 2027 at its Chitose manufacturing plant. More than that, all the established foundries have struggled with yield issues before they were able to proceed with mass production, suggesting that Rapidus will experience the same problems.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/rapidus-to-start-construction-on-1-4nm-fab-in-2027-research-and-development-on-node-to-begin-next-year#main
- https://www.tomshardware.com
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Informational only. No financial advice. Do your own research.