Japanese Chipmaker Secures Funding
Rapidus Corporation, a Japanese semiconductor manufacturer, announced it has secured 267.6 billion yen ($1.78 billion) in a new funding round. The investment, from both government and private sources, is intended to help the company advance toward its goal of mass-producing 2-nanometer logic semiconductors by 2027.
This major investment is part of Japan's broader strategy to reclaim its leadership in the semiconductor industry. In the 1980s, Japan commanded over 50% of the global market, a figure that has plummeted to around 10% in recent years. The formation of Rapidus is a key component of the Ministry of Economy, Trade, and Industry's plan to triple the domestic semiconductor industry's sales to over 15 trillion yen (approx. $108 billion) by 2030. The funding round saw contributions from 32 private companies, including Japanese titans like Toyota, Sony Group, SoftBank, and NEC. This public-private partnership is building a cutting-edge fabrication plant in Chitose, Hokkaido, with a pilot line expected to start in 2025 and full-scale production in 2027. To bridge a technology gap of roughly a decade, Rapidus is not going it alone. The company has a crucial partnership with IBM to develop and license its 2-nanometer technology. It is also collaborating with the Belgium-based research organization Imec to advance next-generation chip designs. The 2nm chips Rapidus aims to produce represent a significant technological leap, moving to a new "Gate-All-Around" (GAA) transistor architecture. This design allows for smaller, faster, and more power-efficient processors, crucial for future advancements in AI, high-performance computing, and autonomous systems. This initiative places Japan in a high-stakes race against established industry leaders. Taiwan's TSMC and South Korea's Samsung have both announced plans for 2nm production to begin in 2025, while Intel is targeting a similar timeframe with its competing 18A node. The government's backing is substantial, with Japan's Ministry of Economy, Trade and Industry committing billions in subsidies to the project. While private firms are major investors, the government will hold a "golden share," giving it veto power over key decisions to ensure the project aligns with national strategic interests.
