On December 13, 2022, IBM and Japanese semiconductor company Rapidus announced a strategic partnership agreement to jointly develop 2-nanometer node technology. Previously, IBM had successfully developed the world’s first 2-nanometer chip. This collaboration aims to apply IBM’s advanced technology to production at Rapidus’s wafer fabrication plant in Japan, which is expected to significantly enhance semiconductor performance and reduce power consumption.
Rapidus was established in August 2022 with a joint investment of 7.3 billion yen from eight major Japanese companies, including Toyota, Sony, and SoftBank, with the goal of domesticating next-generation semiconductors. The company plans to invest an additional 36 billion USD over the next ten years to promote the mass production of 2-nanometer technology.
Under the agreement, Rapidus will receive licensing for IBM’s 2-nanometer process technology and will send engineers to IBM’s research facility in Albany, New York, for training and technical exchange. This will help Rapidus achieve mass production of 2-nanometer chips in Japan, enhancing the country’s competitiveness in the global semiconductor manufacturing industry.
The collaboration has also received support from the Japanese government. The Ministry of Economy, Trade and Industry and the New Energy and Industrial Technology Development Organization (NEDO) have provided Rapidus with a subsidy of 70 billion yen to support its development in advanced semiconductor technology.
Through its partnership with IBM, Rapidus plans to achieve mass production of 2-nanometer chips by 2027. This would position Japan once again among the leaders in cutting-edge semiconductor manufacturing, meeting the high-performance chip demands of supercomputing, artificial intelligence, and other fields.
However, Rapidus also faces challenges. Mass production of 2-nanometer chips requires massive investment and technological accumulation. So far, Rapidus has raised only about 20% of the required funds, and significant additional investment is needed to meet its production goals. Furthermore, the global semiconductor market is highly competitive, and Rapidus must compete with industry leaders in both technology and cost.
Overall, the collaboration between IBM and Rapidus represents Japan’s effort to revitalize its semiconductor sector. If successful, it could have a profound impact on the global semiconductor industry landscape.
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