Rapidus secures funding for 2nm chips
Japanese semiconductor firm Rapidus Corporation announced it has secured 267.6 billion yen in a new funding round from the Japanese government and private companies. The capital will support the company's progression from its current R&D phase to the mass production of 2-nanometer logic semiconductors. The company aims to begin mass production by 2027.
Rapidus was established in August 2022 as a national project to reclaim Japan's leadership in the semiconductor industry, a sector where its global market share plummeted from over 50% in the 1980s to under 10% by 2023. The initiative is a direct response to geopolitical concerns over supply chain disruptions, particularly the global concentration of advanced chip manufacturing in Taiwan. The venture is backed by a consortium of eight major Japanese corporations, including Toyota, Sony, NTT, and SoftBank. To bridge the technological gap, Rapidus has formed critical international partnerships, leveraging IBM's 2-nanometer gate-all-around (GAA) technology and collaborating with Belgium's leading nanoelectronics research center, Imec. The race to 2nm is intensely competitive, with industry giants TSMC and Samsung Electronics aiming for mass production as early as 2025. While Rapidus's 2027 target is behind its rivals, the company aims to differentiate itself by focusing on specialized, custom-designed chips for applications like AI and robotics, rather than competing on sheer volume with standardized products. This next generation of 2nm chips promises a significant leap in performance and energy efficiency. IBM's prototype 2nm chips, which form the basis of Rapidus's efforts, demonstrated a 45% performance improvement or 75% lower power consumption compared to the 7nm chips currently in wide use. The total cost to reach mass production is estimated to be around 5 trillion yen (approximately $32 billion). Including the latest funding, the Japanese government has now committed nearly 1 trillion yen in subsidies to the project, viewing the revitalization of its domestic chipmaking capability as vital for economic security. To attract customers, Rapidus has established a U.S. subsidiary, Rapidus Design Solutions, in Silicon Valley, led by veteran semiconductor executive Henri Richard. The company is constructing its primary manufacturing facility, called the Innovative Integration for Manufacturing (IIM), in Chitose, Hokkaido.
