IBM’s 2-nanometer chip design is being transformed into production-ready silicon by Rapidus, a startup financed by some of the largest electronics companies in Japan, with the goal of mass producing such chips in the second half of this decade. Today’s most cutting-edge semiconductors are produced at the bigger 3nm node.
Rapidus Corp., a Japanese semiconductor startup, is receiving priority support from International Business Machines Corp., with a senior official describing the fledgling foundry business as essential to assuring long-term global supply.
IBM’s 2-nanometer chip design is being transformed into production-ready silicon by Rapidus, a startup financed by some of the largest electronics companies in Japan, with the goal of mass producing such chips in the second half of this decade. Today’s most cutting-edge semiconductors are produced at the bigger 3nm node.
Norishige Morimoto, chief technology officer of IBM Japan, told Bloomberg News in an interview, “When it comes to 2nm technology, we are focusing our efforts on Rapidus and investing a great deal of resources into this project, even giving up some capacity that we could have used in other research.”
“We’d like Rapidus to be successful. We want it to help maintain a steady supply of the chips that the entire world needs.
In an era of escalating geopolitical tensions and protectionism, the quasi-public project Rapidus was launched last year as an initiative to expand Japan’s domestic chipmaking capability. With the backing of the government, it is run by industry veterans with experience in the semiconductor supply chain, such as Tetsuro Higashi, the former chairman of Tokyo Electron Ltd., and Atsuyoshi Koike, the former president of Western Digital Corp. in Japan.
They have a challenging mission ahead of them: build a world-class chipmaking foundry that fabricates silicon for external clients, catching up to market leader Taiwan Semiconductor Manufacturing Co. in a few years. Companies including Sony Group Corp., Nippon Telegraph & Telephone Corp., and Toyota Motor Corp. have all invested in the duo. IBM and the IMEC microelectronics research center in Belgium are partners with Rapidus.
In order to speed up the development process, Rapidus engineers have been sent to IBM’s Albany NanoTech Complex to create 2nm mass production lines while its plant is being built in Hokkaido. In its 2nm initiative, the Japanese company plans to invest 5 trillion ($35 billion), approximately equaling TSMC and rival top chipmaker Samsung Electronics Co.
IBM would be willing to assist Rapidus in closing other partnerships with significant chip companies. As long as they meet our business needs, we won’t rule out any possibilities, according to Morimoto. IBM also offers Samsung’s foundry division with chipmaking technology.
According to Omdia analyst Akira Minamikawa, “Rapidus and Samsung are on the same platform because they both use IBM technology, and it’s very possible the two can strike a win-win partnership since their business models are quite different.”
Using a novel type of transistor composition known as nanosheet, IBM offers Rapidus essential process technology that enables 2nm chip nodes and beyond. From Japan’s current capability, which deals in more advanced nodes like 40nm, moving forward to such advanced geometries is a significant step, but Morimoto is confident in the nation’s extensive pool of skilled chip developers.
As the post-Covid recovery takes hold and the artificial intelligence boom fuels the desire for additional memory and computing power, semiconductor demand is expected to continue increasing.
According to Inna Skvortsova, market researcher at trade group SEMI, global revenue will double in ten years to $1 trillion by 2030. The most cutting-edge chips can currently only be produced by Samsung and TSMC, and there is much interest in diversifying the sources of supply, from Washington to Beijing to Brussels. According to Morimoto, Rapidus would ideally provide a third choice and, furthermore, should be welcomed by the industry’s top players who have had difficulty meeting demand.
We are aware from personal experience that one company cannot adequately provide the most recent generation of chips. Rapidus will be welcomed by TSMC and Samsung as a member of the elite group of chip producers because, as things stand, they are currently keeping consumers waiting. It wouldn’t be an issue for Rapidus to take some orders from them.
Rapidus is not a rival, according to TSMC Chairman Mark Liu, who noted that the Japanese chipmaker will concentrate on developing engineering skills.
