Japan to Allocate $300 Million for Advanced Semiconductor Development

Rapidus Consortium Targets 2nm Chip Production in Japan by 2027

In an ambitious move, Japan-based consortium, Rapidus aims to establish the production of 2nm chips in the country by 2027. However, their plans hinge on collaborations with an industry research center and colleagues from IBM. The Japanese government has decided to provide a subsidy of $300 million over five years to the pertinent research center, the LSTC.

Government Support for Semiconductor Research

According to a Bloomberg report, the Japanese government acknowledges the significance of fundamental research in semiconductor technology production. They also understand the trepidation of private businesses in investing in this high-risk sector. Therefore, the government has committed to share the investment risks by subsidising the activities of LSTC, founded a year ago.

The research center’s primary objective is the exploration of advanced semiconductor chip technology and facilitating the development of processors using artificial intelligence technology. Alongside, the $300 million government subsidies also imply aiding in the initiation of the 2nm technology manufacturing process.

Strengthening Cooperation and Enhancing Global Competitiveness

Beyond enhancing cooperation among Japanese universities in this field, the research center will incorporate technology developers from overseas. The center, helmed by Rapidus’ Chairman Tetsuro Higashi, former head of Tokyo Electron, a company specialising in lithographic equipment production. Ken Saito, the Japanese Minister of Economy, remains hopeful that these concerted efforts will strengthen the long-term competitiveness of Japan’s semiconductor industry on a global scale.

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