Japan's 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 companies. The strategic funding is intended to help the company progress from research and development to the mass production of 2-nanometer logic semiconductors by 2027.
This initiative is a cornerstone of Japan's strategy to reclaim its position in the global semiconductor market, a sector it dominated in the 1980s with over 50% market share. The country's most advanced chip currently in mass production is a 40-nm chip, making the jump to 2-nm a multi-generational leap. The project is a public-private partnership of massive scale. Backers include a consortium of Japan's most prominent tech and finance companies, such as Toyota, Sony, SoftBank, NTT, NEC, Denso, Kioxia, and MUFG Bank. To accelerate development, Rapidus is collaborating with international leaders. Engineers have been sent to IBM's Albany Nanotech Complex in New York to jointly develop mass production technology for IBM's breakthrough 2-nm nanosheet design. The company has also joined the core research program of Belgium-based microelectronics research hub, Imec. Construction is underway on the company's first fabrication plant, named IIM-1, in Chitose, Hokkaido. A pilot production line is slated to begin in 2025, with the ambitious goal of starting mass production in 2027. The 2-nm technology represents a new frontier for semiconductors, promising significant gains in performance and energy efficiency crucial for next-generation AI, autonomous vehicles, and data centers. IBM's 2-nm prototype is projected to achieve 45% higher performance or use 75% less energy than today's advanced 7-nm chips. This venture places Rapidus in direct competition with the industry's giants, Taiwan's TSMC and South Korea's Samsung, who are the undisputed leaders in advanced semiconductor manufacturing and are also targeting 2-nm production around 2025. TSMC alone accounts for over 60% of the global chip foundry market. The Japanese government's role is substantial, viewing the project as critical for economic security. In addition to billions in subsidies, the state holds a "golden share" in Rapidus, granting it veto power over key management decisions to ensure the project aligns with national interests.
