Japan's Rapidus Secures Funding for 2nm Chips

Rapidus is a consortium established in August 2022, backed by eight major Japanese companies including Sony, Toyota, and SoftBank, with the goal of putting Japan back on the map in advanced semiconductor manufacturing. The nation's global market share had fallen to less than 10% by 2023, a steep decline from its 50% dominance in the 1980s. This initiative is a core part of Japan's broader strategy to bolster its economic security and supply chain resilience for critical technologies like AI and 5G. The company is partnering with IBM for its 2nm gate-all-around (GAA) nanosheet transistor technology and is also collaborating with the Belgium-based research hub Imec. This international cooperation is crucial for Japan's strategy, which involves substantial government subsidies to attract foreign technology and expertise. The government has so far pledged a total of 330 billion yen to the project. Rapidus's factory is currently under construction in Chitose, Hokkaido, with plans to launch a pilot production line in April 2025 and begin mass production in 2027. The company recently started prototyping 2nm GAA transistors at the new facility. The fab aims for full automation using AI and robotics, which Rapidus claims will significantly shorten chip delivery times. The race to 2nm is crowded, with major players like TSMC and Samsung targeting mass production in 2025. Intel is also in the running with its 18A process, roughly equivalent to 2nm, which it aims to have ready for manufacturing in the second half of 2024. While Rapidus's 2027 timeline puts it behind competitors, its strategy focuses on providing bespoke chips with a much faster turnaround time for customers with medium-batch needs, particularly in the AI sector.