Japan's Rapidus Secures Major Funding
Japanese semiconductor firm Rapidus Corporation has secured 267.6 billion yen in a new funding round from the government and private sector companies. The funding is intended to advance the company from its R&D phase to the mass production of 2-nanometer logic semiconductors by 2027.
Rapidus Corporation was established in August 2022 as a joint venture of eight major Japanese companies, including Toyota, Sony, and SoftBank, with the goal of reviving Japan's advanced semiconductor manufacturing capabilities. The nation's leadership in the semiconductor industry had declined from a 50% global share in the 1980s. The company is led by industry veterans Tetsuro Higashi, former president and CEO of Tokyo Electron, and Dr. Atsuyoshi Koike, who previously headed Western Digital's Japanese subsidiary. Their mission is to leapfrog generations of chip technology, as Japan's domestic development largely stopped at the 40nm node. A key element of Rapidus's strategy is its partnership with IBM to develop and implement IBM's 2-nanometer node technology. As part of this collaboration, Rapidus engineers are working with IBM researchers at the Albany NanoTech Complex in New York to master the manufacturing process. The company is constructing its primary manufacturing facility, known as the Innovative Integration for Manufacturing (IIM), in Chitose, Hokkaido. A pilot line is expected to start in 2025, with the ambitious goal of beginning mass production of 2nm chips in the latter half of 2027. To secure this ambitious timeline, the Japanese government is providing substantial financial support and has a significant stake in the company. The government holds the option to take majority control if the company faces financial difficulties and also possesses "golden shares," granting it veto power over major corporate decisions. The project is part of a larger national strategy to rebuild a complete semiconductor ecosystem in Japan, ensuring a stable supply of advanced chips for domestic industries like automotive and AI. In addition to its 2nm goals, Rapidus is already planning for the future, with research on 1.4-nanometer technology expected to begin next year.
