Japan’s Rapidus Secures ¥920 Billion in Government Grants to Develop 2nm Chips and Advanced Packaging Technology

Japanese semiconductor company Rapidus, based in Japan, is working on developing 2nm process technology with plans to launch it commercially in 2027. To support its ongoing projects, the Japanese government has provided Rapidus with a substantial grant of ¥590 billion yen ($3.89 billion), which will go towards developing the 2nm production node and purchasing cleanroom equipment, as well as the development of multi-chiplet packaging technology.

With the government’s total support now at ¥920 billion ($6.068 billion), Rapidus is receiving a major boost towards achieving its goals in the semiconductor industry. Despite the hefty project cost estimate of around ¥5 trillion ($32.983 billion), the company is hopeful that with the backing of the Japanese government and support from prominent Japanese companies like Toyota Motor and Nippon Telegraph and Telephone, it will secure enough financing to move forward.

Rapidus’s CEO, Atsuyoshi Koike, has outlined the company’s timeline for commercial production of 2nm chips to kick off in 2025, with large-scale production expected to begin by 2027. Aside from working on the 2nm fabrication process in partnership with IBM and constructing its manufacturing facility, Rapidus is also focusing on advanced packaging technology for multi-chiplet System-in-Packages (SiPs). The recent government subsidies include more than ¥50 billion ($329.85 million) specifically allocated for research and development in this area, marking the first time Japan has offered subsidies for such technologies.

Another interesting development is Rapidus’s use of a portion of Seiko Epson Corporation’s Chitose Plant located in Chitose City, Hokkaido for its back-end packaging processes. This facility is close proximity to Rapidus fab currently under construction in Bibi World an industrial park in Chitose City slated for use in pilot-stage research and development activities