Rapidus, IBM sign development partnership on next-generation chips

Rapidus, IBM sign development partnership on next-generation chips
Rapidus Corp. President Atsuyoshi Koike speaks during a joint press conference with IBM Corp. in Tokyo on Dec. 13, 2022. (Kyodo)

TOKYO (Kyodo) — New Japanese semiconductor producer Rapidus Corp. and IBM Corp. said Tuesday they have signed a strategic partnership deal to jointly develop technologies to manufacture next-generation chips amid heated rivalry between the United States and China.

Rapidus aims to produce 2-nanometer chips starting in 2027 in cooperation with the U.S. tech giant, which last year unveiled breakthrough nanosheet technology paving the way for the 2 nm node.

We can achieve “a more resilient supply chain that better balances geopolitical risk,” by having production capacity in the United States, Europe and Japan, said Dario Gil, senior vice president and director of research at IBM, at a press conference in Tokyo.

The issue of supply chain resiliency has been under the spotlight after the COVID-19 pandemic significantly disrupted global supply chains which caused shortages of semiconductors. The geopolitical risk of disruptions has also heightened as a result of Russia’s war in Ukraine.

Rapidus and IBM said they will jointly develop the cutting-edge technology at the Albany Nanotech Complex in the state of New York.

Rapidus will join in research and development at the nanotech complex, which includes Applied Materials Inc., Samsung Electronics Co. and Tokyo Electron Ltd.

“It is a long-awaited international partnership and is essential for Japan to play a truly crucial role again in the semiconductor supply chain,” Rapidus President Atsuyoshi Koike said.

Japanese chip manufacturers were once dominant players in the industry in the 1980s but now lag behind leading chipmakers from countries such as Taiwan and South Korea.

In an effort to boost Japan’s competitiveness in the chip sector, Rapidus was set up in August this year through a 7.3 billion yen ($53 million) investment by Toyota Motor Corp., Sony Group Corp. and six other major Japanese companies.

Rapidus, which is tasked with the research, development, design, manufacturing, and selling of advanced logic semiconductors, will also be given 70 billion yen by the Japanese government in subsidies as part of its semiconductor strategy.

Besides IBM, Rapidus has joined hands with a Belgian nanotechnology developer, known for extreme ultraviolet lithography, which is essential for creating advanced semiconductors.

Peyman Taeidi

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