Japan's Rapidus Secures Major Funding
Japanese semiconductor firm Rapidus Corporation announced it has secured 267.6 billion yen in a new funding round. The investment comes from the Japanese government and private sector companies. The funds will support the company's plan to begin mass production of 2-nanometer logic semiconductors by 2027.
This initiative is part of a broader Japanese strategy to reclaim a leading position in the global semiconductor market, a title it lost after its dominance in the 1980s. While global competitors are mass-producing 3-nanometer chips, Japan's most advanced current generation in mass production is the 40-nanometer chip. Rapidus was established in August 2022 as a public-private partnership with initial backing from eight major Japanese corporations. This consortium includes prominent names like Toyota, Sony Group, SoftBank, and NEC, who collectively invested 7.3 billion yen at the company's founding. The push for 2-nanometer technology is driven by the demands of artificial intelligence, autonomous driving, and decarbonization. This advanced process allows for chips that have significantly higher performance and lower energy consumption compared to current generations. IBM, a key partner, projects its 2nm technology can achieve 45% higher performance or 75% lower energy use than today's 7nm chips. To achieve its ambitious goals, Rapidus is not working in isolation. The company has entered a strategic partnership with IBM for its 2nm gate-all-around (GAA) technology and is also collaborating with the Belgian research hub imec. Engineers from Rapidus have been dispatched to IBM's facility in Albany, New York, to work on the technology. A new large-scale manufacturing facility, named IIM-1, is currently under construction in Chitose, Hokkaido. The company is targeting the start of a pilot production line in 2025. To support the project, leading Dutch semiconductor equipment manufacturer ASML is also establishing a local office in Chitose. The latest funding round of 267.6 billion yen includes contributions from 32 private companies, highlighting a broad national effort. New and returning investors include major players such as Canon, Honda, Fujitsu, and Dai Nippon Printing.
