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Honda Motor Eyes Investment in Chipmaker Rapidus

timea day ago

  • Automotive

Honda Motor Eyes Investment in Chipmaker Rapidus

News from Japan Economy Technology Jun 11, 2025 12:29 (JST) Tokyo, June 11 (Jiji Press)--Japan's Honda Motor Co. is considering investing in Rapidus Corp., a Tokyo-based chipmaker working to realize domestic production of next-generation semiconductors. With the investment, the automaker aims to domestically procure such semiconductors, to be used for automated driving systems, to enhance its supply chains, sources have said. Rapidus has received investments also from another Japanese automaker Toyota Motor Corp. and electronics and entertainment giant Sony Group Corp. The chipmaker is asking shareholders and financial institutions to make fresh investments in the company. Honda's investment would make it easier for Rapidus to procure more funds from the private sector and secure clients. Rapidus plans to start mass production of cutting-edge chips with a circuit line width of 2 nanometers at its plant in Chitose in the northernmost prefecture of Hokkaido from 2027. [Copyright The Jiji Press, Ltd.] Jiji Press

Honda to invest in Japanese chipmaker Rapidus
Honda to invest in Japanese chipmaker Rapidus

Nikkei Asia

time2 days ago

  • Automotive
  • Nikkei Asia

Honda to invest in Japanese chipmaker Rapidus

TOKYO -- Honda Motor is preparing to invest in Japanese chipmaker Rapidus to domestically procure semiconductors for next-generation automobiles, Nikkei has learned. Rapidus already has Toyota Motor as its main shareholder. By backing the company established in August 2022, the two major Japanese automakers will secure sources of chips made in the country, which will also help Rapidus begin mass production of cutting-edge products and find customers.

Rapidus Begins 2-nm Chip Pilot Production, Vital for Japan's Tech Future
Rapidus Begins 2-nm Chip Pilot Production, Vital for Japan's Tech Future

Japan Forward

time13-05-2025

  • Business
  • Japan Forward

Rapidus Begins 2-nm Chip Pilot Production, Vital for Japan's Tech Future

このページを 日本語 で読む Rapidus is leading Japan's push to establish domestic production of next-generation semiconductors. In April, the company began prototyping chips at its factory in Chitose, Hokkaido. This marks a crucial step in tackling two of its biggest challenges: attracting customers and securing funding. To get the business off the ground, Rapidus must prove it can deliver high-performance chips — and demonstrate that capability to the world. In semiconductors, performance improves as circuit line widths become narrower. Japanese manufacturers once held a majority share of the global semiconductor market, but they fell behind in the race toward miniaturization. Today, Japan can only produce general-purpose logic semiconductors with 40-nanometer line widths. Now, Rapidus is attempting to domestically produce next-generation 2-nanometer semiconductors. No company in the world has yet mass-produced chips at this scale. So why is Japan, which once lost its edge in miniaturization, now positioned to take on such an ambitious challenge? The answer lies nearly five years in the past. Tetsuro Higashi, former president of Tokyo Electron and now chairman of Rapidus, was approached by IBM with a proposal: "Can Japan manufacture semiconductors using IBM's 2nm technology?" Chairman Tetsuro Higashi of Rapidus on April 27. (©Sankei by Hideo Iida) Behind this question were growing geopolitical concerns about semiconductor supply chains. In the field of advanced semiconductor contract manufacturing, Taiwanese companies — particularly TSMC — held over 90% of the global market share. A Taiwan contingency could seriously disrupt the supply of advanced chips. Securing production bases outside of Taiwan had become a strategic priority. After evaluating IBM's technology and confirming its viability, Japanese stakeholders decided to move forward with the domestic production of 2-nanometer semiconductors. Rapidus was established in August 2022, about two years after IBM's proposal. Fortunately, Japan still had a pool of experienced engineers from its semiconductor heyday. Rapidus recruited many of them, sending around 150 to IBM's research labs in the United States to master the new technology. Around 70 have since returned and are now working on prototype development. The first prototypes are expected between mid- and late-July. Rapidus will begin by producing standard chips using IBM's technology. Customer-specific prototypes will follow, with the goal of delivering them within fiscal 2025. To improve yield — the ratio of usable chips — Rapidus is using a method called "batch-type" or "single-wafer processing," in which wafers are handled one at a time. While not ideal for mass production, this approach allows real-time feedback to the design team. Defects can be quickly addressed, enabling faster improvement of the yield rate. Still, mass-producing these advanced chips is a formidable task. At a press conference on April 1, Rapidus President Atsuyoshi Koike admitted, "Developing mass production technology is extremely difficult. Confirming yields and ensuring reliability are major obstacles." Whether the company can begin mass production by its 2027 target remains uncertain. Can Rapidus truly mass-produce 2-nanometer semiconductors? Some companies remain skeptical. The prototypes will be key to dispelling doubts and gaining trust. So far, the Japanese government has pledged over ¥1.7 trillion JPY (about $11.6 billion USD) in subsidies to Rapidus. On April 25, a new law was enacted to expand financial support. This includes direct investments and debt guarantees. A ¥100 billion (about $658 million) investment is planned for later in 2025. Such massive government backing has drawn criticism. If domestic production fails, the burden will fall on taxpayers — making failure unacceptable. On the other hand, if Rapidus can quickly supply cutting-edge semiconductors tailored to the specific needs of industries — such as autonomous vehicles — it could have a significant ripple effect across Japan's broader industrial base. The scale of government support reflects how strategically important next-generation semiconductor production has become. "If Rapidus fails, semiconductor equipment and materials manufacturers [areas where Japan still has an edge] could begin relocating overseas," warns Hideki Wakabayashi. He is a Distinguished Professor at Kumamoto University and a member of the Ministry of Economy, Trade and Industry's Semiconductor and Digital Industry Strategy Committee. "In that case, Japanese companies would lose their edge in products that use advanced logic chips," he continued. Rapidus's mission goes beyond reviving Japan's semiconductor industry. In a country still searching for a new growth engine to follow the automotive sector, the success of this initiative could shape Japan's economic future. ( Read the article in Japanese . ) Author: Shunichi Takahashi, The Sankei Shimbun このページを 日本語 で読む

Rapidus begins pilot production of 2-nanometer chips in Hokkaido
Rapidus begins pilot production of 2-nanometer chips in Hokkaido

Japan Times

time02-04-2025

  • Business
  • Japan Times

Rapidus begins pilot production of 2-nanometer chips in Hokkaido

Government-backed Rapidus started pilot production of advanced chips in Hokkaido this week, taking Japan one step closer to its goal of a return to semiconductor-manufacturing leadership. The company announced Tuesday that its plant near New Chitose Airport is ready for test production of next-generation 2-nanometer chips. Rapidus aims to mass produce those semiconductors — which are vital for advanced technologies, such as artificial intelligence and autonomous driving — in 2027. 'It's a really challenging technology, but we've managed to make progress, and we can finally launch the pilot line.' said Atsuyoshi Koike, chief executive of Rapidus, during a news conference on Tuesday. 'This is a crucial step for the future.' Chips are more advanced — but also more technologically challenging — as the measure of the transistor gate size falls. Japan is stuck at the 40-nm level, but Rapidus has been teaming up with IBM to get technological support to make 2-nm chips. According to Rapidus, prototype chips will likely be produced in July this year. With semiconductors becoming increasingly crucial for economic security amid escalating geopolitical tensions, the Japanese government is seeking to revitalize the country's chip-manufacturing capability with a big bet on Rapidus. Japan has said it will provide up to ¥802.5 billion ($5.4 billion) in additional funding for Rapidus to support production of cutting-edge chips. With the fresh aid, the total investment in the company will be as much as about ¥1.7 trillion. Koike has said financial support from the government is really a 'must,' since competitors, such as China and the United States, are providing significant funding to their own semiconductor companies. 'Next-generation semiconductors are critical for areas such as self-driving vehicles and generative AI. As rival chip producers have yet to achieve mass production, it's important to beef up government support,' said industry minister Yoji Muto on Tuesday. The government aims to triple the sales of domestically produced chips to ¥15 trillion in 2030, compared with about ¥5 trillion in 2020. Rapidus was founded in August 2022 by Koike and former Tokyo Electron CEO Tetsuro Higashi along with other chip experts to develop a chip foundry business in Japan. Foundries, often called fabs, manufacture chips for clients based on their designs and other owners of intellectual property. Taiwan Semiconductor Manufacturing Co. dominates the market, while other players including Intel and South Korea's Samsung Electronics struggle to catch up. If Rapidus doesn't succeed, Koike told The Japan Times last year, 'Japan will be in trouble, and all industries will eventually fall behind."

Rapidus to launch pilot line for advanced chips on Tuesday
Rapidus to launch pilot line for advanced chips on Tuesday

Japan Times

time31-03-2025

  • Automotive
  • Japan Times

Rapidus to launch pilot line for advanced chips on Tuesday

Rapidus is set to start the operations of a pilot line at its plant for advanced semiconductors in Chitose, Hokkaido, on Tuesday. The launch of the test line will be an important milestone in Rapidus' aim of beginning mass production at the factory in 2027. Securing domestic output bases for chips, a strategic item, is a pressing issue for Japan at a time when geopolitical risks such as a standoff between the United States and China are becoming more apparent. Rapidus was established in 2022 with investments from Toyota Motor, Nippon Telegraph and Telephone Corp. and other Japanese companies. The Chitose plant is slated to produce cutting-edge semiconductors with a circuit line width of 2 nanometers, expected to be used in artificial intelligence technology and autonomous driving systems. A nanometer is one-billionth of a meter. Last December, Rapidus became the first Japanese firm to adopt extreme ultraviolet lithography equipment, which is essential for making chips with narrow circuit line widths. "We will surely be able to start mass production by 2027," Rapidus President Atsuyoshi Koike said. "It's not an easy path, but we aim to improve the yield rate (in the pilot production phase) and ensure reliability." Taiwan Semiconductor Manufacturing Co., the world's largest semiconductor foundry, and other chipmakers are also preparing to mass-produce 2-nanometer chips. Rapidus is aiming to set itself apart from competitors by focusing on shortening delivery times.

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