Japan's Rapidus Secures Funding for 2nm Chips
Japanese semiconductor firm Rapidus Corporation has secured 267.6 billion yen in a funding round supported by the Japanese government and private companies. The company stated the funds will enable it to move from its current R&D phase to the mass production of 2-nanometer logic semiconductors by 2027.
Rapidus is a critical component of Japan's strategy to reclaim a leading position in the global semiconductor market, a significant shift from its decline to less than 10% of global sales by 2023. This initiative is a response to the country's diminished role after holding over 50% of the market in the 1980s with giants like NEC and Toshiba. The recent funding round saw the Japanese government invest 100 billion yen, with an additional 167.6 billion yen coming from 32 private companies. This diverse private-sector backing includes major players like Toyota, Sony, SoftBank, and other leading Japanese corporations, signaling a unified national effort. The government's stake in Rapidus is structured to provide strong support while maintaining a degree of separation in normal operations, holding 11.5% of voting rights. However, this can increase to 40% if the company's financial situation deteriorates, and the government also holds a "golden share" to veto critical management decisions. Rapidus is targeting an ambitious goal of mass-producing 2-nanometer chips by 2027, a timeline that places it in direct competition with established industry leaders. Taiwan's TSMC, which controls a majority of the foundry market, began risk production of its 2nm process in 2024 and is planning for mass production in the latter half of 2025. South Korea's Samsung is also on a similar trajectory, aiming for 2nm mass production in 2025, initially for mobile devices. Meanwhile, U.S.-based Intel is pushing its comparable 18A process, with manufacturing readiness expected in the second half of 2024.
