Rapidus, a Japanese government-backed semiconductor venture, is actively seeking a ¥100 billion (approximately US$690 million) loan from four major financial institutions—Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation, and the Development Bank of Japan, as reported by Kyoto News on August 21. This funding is critical for bridging the financial gap in their ambitious plan to begin mass production of 2-nanometer (nm) chips by 2027. Established in 2022 with joint investments from major Japanese companies such as Toyota, Sony, and NTT, Rapidus has already received ¥920 billion in government subsidies. However, the company estimates that the total cost to complete the project will be around ¥5 trillion, leaving a significant funding shortfall.
In addition to the loan, Rapidus is expected to seek further investments from its shareholders, including Toyota, to support the estimated ¥2 trillion required for trial production by 2025 and an additional ¥3 trillion for mass production. Despite these efforts, challenges remain, particularly in securing sufficient customer demand and advancing the necessary technology. The Japanese government, under Prime Minister Fumio Kishida, is considering legal revisions to provide guarantees for private financing to assist Rapidus. However, with Kishida expected to step down soon, the future of these potential legal changes remains uncertain, adding further complexity to Rapidus's financial and operational landscape.
The global foundry market reached US$123.4 billion in 2023, reflecting a 13% decline compared to 2022. The Taipei-based research institute Market Intelligence & Consulting Institute (MIC) predicts the market will grow by approximately 17%, reaching US$144.4 billion in 2024. Among the world's top 10 foundries, TSMC ranked first in 2023 with US$69.3 billion in revenue, securing a 56% market share. Samsung followed with US$17.2 billion, holding a 14% market share, while GlobalFoundries ranked third with US$7.4 billion, capturing a 6% market share.