Japanese New Semiconductor Company 'Rapidus' Considering Securing 5 Trillion Yen in Funding
"Funding Needs Can Be Met Through Government Support and IPO"
Rapidus, a semiconductor company jointly established by major Japanese companies including Toyota Motor Corporation, Kioxia, and Sony, is exploring ways to raise an additional 5 trillion yen (approximately 49.191 trillion KRW) through government support and an initial public offering (IPO).
On the 3rd, Tetsuro Higashi, Chairman of Rapidus, stated in an interview with Kyodo News, "To develop technology, we need funding of 2 trillion yen (approximately 19.676 trillion KRW)," and expressed his intention to request mid- to long-term support from the government.
Chairman Higashi estimates that an additional 3 trillion yen (approximately 29.514 trillion KRW) will be required for building semiconductor factories and other expenses. Regarding the process of raising the 3 trillion yen, he indicated that "stock listing will be an important means," hinting at an IPO.
![Tetsuro Higashi, Chairman of Lapidus <br>[Photo by Yonhap News]](http://www.asiae.co.kr/news/img_view.htm?img=2023050319182120304_1683109101.jpg)
Rapidus is a startup established last August through a joint investment of 7.3 billion yen (approximately 71.8 billion KRW) by eight major Japanese companies including Toyota, Kioxia, NTT, SoftBank, NEC, Denso, and Mitsubishi UFJ. It is regarded as a savior to revive Japan’s stagnant semiconductor manufacturing industry.
Rapidus has set a goal to mass-produce advanced 2-nanometer (nm; 1 nm is one billionth of a meter) semiconductors by 2027. Recently, it announced plans to build a semiconductor factory in Chitose, Hokkaido, Japan. It also added plans to hire 200 employees within this year.
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The Japanese government promised 70 billion yen (approximately 688.7 billion KRW) in support at the time of Rapidus’s establishment. Last month, it announced an additional support of 260 billion yen (2.558 trillion KRW). The total support amount reaches 330 billion yen (approximately 3.245 trillion KRW).
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