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Chip Firm Rapidus Building Japan's 'TSMC' from Scratch, Investing Billions of Dollars

Views : 35
Update time : 2023-09-13 11:23:05
        Japanese government-backed Rapidus is reportedly lobbying chipmakers, suppliers and research institutions to open factories on the island of Hokkaido in a bid to turn the remote region into a semiconductor innovation center within a decade. By investing billions of dollars, Rapidus is building Japan's own "TSMC" from scratch.
 
 
        The 13-month-old startup has been in business for more than a decade.
        The 13-month-old startup aims to build cutting-edge chips from scratch as part of a broader design to build an ecosystem similar to Silicon Valley's. Rapidus CEO Atsuyoshi Koike said the company's vision is to build a chip manufacturing cluster that spans coast-to-coast and has easy access to multiple ports. 
        Atsuyoshi Koike added, "My ambitious vision is to realize 'Hokkaido Valley' on a scale that can compete with Silicon Valley. We have the opportunity to become the North Star that sets the trend for the global chip industry." 
        Rapidus, a company backed by billions of dollars in government funding as well as corporate backing from the likes of Sony Group and Toyota Motor, is working on a plan to mass-produce 2nm logic chips by 2027. If successful, the attempt would represent a generational leap in technology for Japan, whose chip-making capabilities stagnated decades ago at the traditional 40nm node.
        Atsuyoshi Koike is inviting manufacturers across the supply chain to invest in Japan's northernmost prefecture of Hokkaido, where Rapidus is building a factory in preparation for a pilot line in 2025. The chip veteran said companies need to work together more effectively to achieve common goals. Working separately, he said, "is not the right way to go."
        In addition, Atsuyoshi Koike said Rapidus will not compete with global chip giants that produce a large number of general-purpose chips, but will focus on pioneering specialized chips, such as low-power artificial intelligence chips. Hokkaido, with its ample supply of clean water and one of Japan's largest renewable energy-producing regions, is an ideal location for the chip revival, he said. 
        The joint venture is at the heart of Prime Minister Fumio Kishida's signature project to revitalize Japan's position as a chip superpower and boost its long-stagnant economy. Policymakers say Japan's ability to make state-of-the-art chips domestically is critical to reducing dependence on industry leaders TSMC and Samsung Electronics in an era of artificial intelligence and tensions between the U.S. and China.
        Japan has allocated $2.4 billion for the joint venture, and officials have said they are prepared to provide a similar budget each year. Fumio Kishida has pledged "maximum support" for Rapidus to ensure the joint venture stays on track. 
        However, daunting obstacles remain. A shortage of engineers is limiting global chip production, and Rapidus employs just 200 people, compared with more than 73,000 at TSMC, which is also hiring workers at a new factory in Kumamoto prefecture in southwestern Japan. 
        However, Atsuyoshi Koike said he was confident. He mentioned that the U.S.-based Pan-Lam Group (Lam Research) and the Belgian microelectronics research center IMEC are not the only companies with offices in Hokkaido. In addition, many Japanese chip material suppliers and equipment makers are considering setting up production bases near Rapidus' upcoming plant.
        TSMC's success in stimulating economic growth in Kumamoto Prefecture has raised high hopes for Rapidus' impact on Hokkaido.
Hokkaido has attracted manufacturers for years, claiming it has fewer earthquakes than other parts of Japan and has water and renewable energy. Hokkaido has had little heavy manufacturing since it closed its last coal mine in 2002. The prefecture earns about 4 percent of Japan's gross domestic product. 
        Creating Hokkaido's version of Silicon Valley will take time, but the plan is feasible, Atsuyoshi Koike said, adding, "We hope to realize this goal around 2030."
 
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