Rapidus to receive $3.9 billion in government aid for 2nm multi-chip technology

Rapidus, a Japanese company developing 2-nanometer process technology and planning to commercialize it in 2027, will receive huge government subsidies for its ongoing projects. The Japanese government will provide subsidies totaling 590 billion yen ($3.89 billion) to support Rapidus. In addition to developing the 2nm production node and investing in clean room equipment, Rapidus will fund the development of multi-chip packaging technology.

This additional funding will significantly help the company achieve its ambitious plans. With government support now totaling 920 billion yen ($6.068 billion), Rapidus is gaining solid momentum to become a major player in the semiconductor industry. The entire project is expected to cost about 5 trillion yen ($32.983 billion), so funding has not yet been secured. At the same time, with the support of the Japanese government and large Japanese conglomerates such as Toyota Motor and Nippon Telegraph and Telephone, the company may obtain sufficient financing.

Rapidus CEO Atsuyoshi Koike said the company is expected to begin test production in April 2025, with plans to begin mass production in 2027. Commercial production of 2nm chips will begin sometime in 2025.

In addition to cooperating with IBM to develop 2nm manufacturing processes and build manufacturing plants, Rapidus is also committed to advanced packaging technology for multi-chip system-in-package (SiP). The latest government subsidies include more than 50 billion yen ($329.85 million) for research and development in the field, the first time Japan has subsidized such technology.

Notably, Rapidus will use part of Seiko Epson’s Chitose Factory (located in Chitose, Hokkaido) for its back-end packaging process. The factory is located near the company’s wafer fab, which is currently under construction at Bibi World, an industrial park in Chitose City. The space will be dedicated to pilot phase research and development activities.

Source: Rapid, Nikkei

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