Japanese chip foundry venture Rapidus Corp. said it will build a plant in Chitose City on Japan’s northern island of Hokkaido, in the country’s latest move to galvanize its semiconductor industry.
(Bloomberg) — Japanese chip foundry venture Rapidus Corp. said it will build a plant in Chitose City on Japan’s northern island of Hokkaido, in the country’s latest move to galvanize its semiconductor industry.
The factory will mass-produce 2-nanometer chips in the late-2020s, with a test run planned in 2025, Rapidus said in a release Tuesday. The company is applying for further government funding for the project, under development with partner International Business Machines Corp.
The world’s No. 3 economy has been readying subsidies to bolster domestic production of high-end semiconductors as tech protectionism grows worldwide.
While home to some of the leading suppliers of chipmaking tools, Japan remains generations behind in key areas of chip production. It relies heavily on sector leader Taiwan Semiconductor Manufacturing Co., which is building a plant in Kumamoto on Japan’s southwestern island of Kyushu.
When Rapidus’ new plant comes online, it would still likely lag TSMC, which plans to mass produce 2nm chips in 2025.
Heavily-dependent on agriculture and tourism, Hokkaido has been gunning for more manufacturers to set up shop there, touting its track record of fewer quakes compared to the rest of Japan, as well as access to water and renewable energy sources.
Backed by Toyota Motor Corp. and Sony Group Corp., Tokyo-based Rapidus has so far secured an allocation of 70 billion yen ($514 million) in subsidies from the country’s Ministry of Economy, Trade and Industry last year. The US government is spending about $50 billion to rebuild its own domestic chip production capabilities.
Rapidus’s investors also include auto parts maker Denso Corp., memory chipmaker Kioxia Holdings Corp., MUFG Bank, NEC Corp. and telecom firms Nippon Telegraph & Telephone Corp. and SoftBank Corp.
–With assistance from Debby Wu.
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