Rapidus Secures Funding for 2nm Chips
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 company stated the funds will enable its progression from R&D to mass production of 2-nanometer logic semiconductors by 2027.
Established in August 2022, Rapidus Corporation is a public-private partnership at the forefront of Japan's strategy to regain a leading position in the global semiconductor market. The company is a consortium backed by eight major Japanese corporations: Denso, Kioxia, MUFG Bank, NEC, NTT, SoftBank, Sony, and Toyota. This initiative is a response to Japan's declining market share in the semiconductor industry, which fell from over 50% in the 1980s to just 6% in 2020. The Japanese government has committed substantial financial support to Rapidus, signaling a more aggressive industrial policy to ensure national and economic security. The government's investment could give it a stake of over 50% if the company faces financial difficulties, and it also holds a "golden share" with veto power over board decisions. This is part of a broader strategy to triple the domestic sales of semiconductor-related industries to over 15 trillion yen by 2030. Rapidus has entered into a strategic partnership with IBM to develop 2-nanometer node technology, giving it access to IBM's breakthrough research. More than 100 Rapidus scientists and engineers are working alongside IBM researchers at the Albany NanoTech Complex in New York. The company has also joined imec, a leading European microelectronics research center, to further its R&D capabilities. The company is led by industry veterans, with Tetsuro Higashi, former head of Tokyo Electron, as Chairman, and Atsuyoshi Koike, who previously led Western Digital's Japanese subsidiary, as President and CEO. To better serve its partners and potential customers in the Americas, Rapidus has established a U.S. subsidiary, Rapidus Design Solutions, in Santa Clara, California, led by long-time semiconductor executive Henri Richard. Rapidus is currently constructing its "Innovative Integration for Manufacturing" (IIM) facility in Chitose, Hokkaido. The company has already started installing Japan's first EUV (extreme ultraviolet) exposure tool for mass production at this site. The goal is to begin pilot production of 2nm chips in 2025 and move to mass production by 2027. These 2nm chips are expected to offer up to 45% better performance and use 75% less energy compared to the 7nm chips that were on the market in 2022.
