Japanese Chipmaker Rapidus Secures Major Funding
Japanese semiconductor firm Rapidus Corporation announced it has secured 267.6 billion yen in a new funding round from the Japanese government and private sector companies. The capital is intended to help the company transition from its current R&D phase to the mass production of 2-nanometer logic semiconductors by 2027.
Rapidus was established in August 2022 as a joint venture backed by eight major Japanese corporations, including Toyota, Sony, and SoftBank. The company is led by industry veterans Tetsuro Higashi, former head of Tokyo Electron, and Atsuyoshi Koike, who previously led Western Digital's Japan unit. This initiative is the centerpiece of Japan's strategy to rebuild its semiconductor prowess. After holding over 50% of the global market in the 1980s, Japan's share has fallen to less than 10%. The government's investment aims to ensure national economic security and re-establish the country as a critical player in the global technology supply chain. The new funding includes 100 billion yen from the Japanese government, which now holds a "golden share" granting it veto power over major corporate decisions. The remaining 167.6 billion yen was invested by a group of 32 private companies, including Canon, Fujitsu, and Honda. To accelerate its timeline, Rapidus has formed a strategic partnership with IBM to utilize its 2-nanometer gate-all-around (GAAFET) nanosheet technology. More than 100 Rapidus engineers and scientists are working at IBM's Albany NanoTech Complex in New York to facilitate the technology transfer. The race to produce 2nm chips is highly competitive, pitting Rapidus against the world's largest chipmakers. Industry leader TSMC and rival Samsung both aim to begin mass production of 2nm chips in 2025. Rapidus is constructing its main fabrication plant, named IIM-1 (Innovative Integration for Manufacturing), in Chitose, Hokkaido. The company has already started installing its first extreme ultraviolet (EUV) lithography tools and began operating a pilot line for research and development. Chips built on 2nm process technology are expected to deliver up to a 45% performance boost or use 75%
