Chip funding surge has provided an additional 631.5 billion yen to Tokyo-based semiconductor maker Rapidus Corp. Additionally, the industry ministry announced the funding on Saturday. Rapidus is developing next-generation semiconductors and aims to start mass production of 2-nanometer chips in fiscal 2027. Meanwhile, the company will use the new funding mainly for prototype refinement.
Industry minister Ryosei Akazawa spoke at the opening ceremony of a semiconductor analysis facility in Chitose, Hokkaido. We will spare no effort in providing support necessary to ensure the mass production plan’s success, Akazawa said. Rapidus established the new analysis facility in Chitose. Furthermore, the facility sits next to a plant where a prototype production line for the front-end process is already operating.
Semiconductor manufacturing divides into front-end and back-end processes. In addition, front-end involves forming circuits on wafers. Conversely, back-end involves assembling final products. Of the additional state support, 514.1 billion yen will go to the front-end process. Meanwhile, the remaining 117.4 billion yen will fund the back-end process.
The new analysis facility will analyze semiconductors produced at the adjacent plant. Consequently, this analysis will help improve yield rates for the company. Yield rates ultimately decide profitability in mass production. Moreover, Rapidus CEO Atsuyoshi Koike expressed confidence about the company’s progress. We are on track to achieve quality and yield targets at the fastest possible pace, Koike said at a press conference.
Additionally, Rapidus also announced plans for a back-end process research and development hub. The hub will aim to establish technologies such as chiplet, which efficiently stacks multiple semiconductor chips. Subsequently, full-scale operation of this hub will begin soon. Separately, NEDO, a national research and development corporation, has decided to provide about 76 billion yen in support.
This funding will support a development plan for AI-related semiconductors by Fujitsu Ltd. and IBM Japan Ltd. Meanwhile, Fujitsu and IBM Japan are expected to entrust manufacturing to Rapidus in the future. This arrangement would create a complete domestic semiconductor exatransition wordsctlya s it is onlu ad osystem.
Japan once dominated the global chip industry but lost ground to Taiwan and South Korea. Consequently, the government now views semiconductor self-sufficiency as a matter of economic security. Moreover, Rapidus faces stiff competition from established players like TSMC and Samsung. However, Japan’s sustained investment could eventually close the technology gap. Finally, the coming years will determine whether this chip funding surge translates into commercial success.
