Government-backed Rapidus started pilot production of advanced chips in Hokkaido this week, taking Japan one step closer to its goal of a return to semiconductor-manufacturing leadership.

The company announced Tuesday that its plant near New Chitose Airport is ready for test production of next-generation 2-nanometer chips.

Rapidus aims to mass produce those semiconductors — which are vital for advanced technologies, such as artificial intelligence and autonomous driving — in 2027.

“It's a really challenging technology, but we've managed to make progress, and we can finally launch the pilot line.” said Atsuyoshi Koike, chief executive of Rapidus, during a news conference on Tuesday. “This is a crucial step for the future.”

Chips are more advanced — but also more technologically challenging — as the measure of the transistor gate size falls. Japan is stuck at the 40 nm level, but Rapidus has been teaming up with IBM to get technological support to make 2 nm chips.

According to Rapidus, prototype chips will likely be produced in July this year.

With semiconductors becoming increasingly crucial for economic security amid escalating geopolitical tensions, the Japanese government is seeking to revitalize the country's chip-manufacturing capability with a big bet on Rapidus.

Japan has said it will provide up to ¥802.5 billion ($5.4 billion) in additional funding for Rapidus to support production of cutting-edge chips. With the fresh aid, the total investment in the company will be as much as about ¥1.7 trillion.

Koike has said financial support from the government is really a “must,” since competitors, such as China and the United States, are providing significant funding to their own semiconductor companies.

“Next-generation semiconductors are critical for areas such as self-driving vehicles and generative AI. As rival chip producers have yet to achieve mass production, it's important to beef up government support,” said industry minister Yoji Muto on Tuesday.

The government aims to triple the sales of domestically produced chips to ¥15 trillion in 2030, compared with about ¥5 trillion in 2020.

Rapidus was founded in August 2022 by Koike and former Tokyo Electron CEO Tetsuro Higashi along with other chip experts to develop a chip foundry business in Japan.

Foundries, often called fabs, manufacture chips for clients based on their designs and other owners of intellectual property. Taiwan Semiconductor Manufacturing Co. dominates the market, while other players including Intel and South Korea’s Samsung Electronics struggle to catch up.

If Rapidus doesn’t succeed, Koike told The Japan Times last year, “Japan will be in trouble, and all industries will eventually fall behind."

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved