Mon Sep 09 14:46:27 UTC 2024: ## Rapidus Seeks Additional Funding for Ambitious 2nm Chip Project in Hokkaido
Japanese chip upstart Rapidus, aiming to revitalize the country’s semiconductor industry, is reportedly seeking an extra ¥100 billion ($699 million) in funding for its 2nm wafer fabrication plant in Hokkaido.
Despite only launching operations a year ago, the company has apparently encountered unforeseen challenges, prompting them to turn to both existing and new investors for the additional funds. Initially envisioned as a bank loan, the ¥100 billion request reflects the company’s perceived distance from commercialization.
This news follows the Japanese government’s generous commitment to the project. In May, the Japan Times reported that the government had earmarked ¥920 billion ($6.4 billion) for Rapidus, with additional aid potentially being considered depending on the project’s progress.
Rapidus initially secured a joint investment of ¥73 billion from industry heavyweights including Toyota, Sony, NTT, SoftBank, Kioxia, Denso, NEC, and MUFG Bank. Additionally, the company has secured 2nm development support from IBM.
While Rapidus previously stated an ambitious goal of achieving 2nm volume production by 2027, with pilot production commencing in 2026, recent setbacks have cast doubt on the timeline. The company’s silence on the fresh funding request raises questions about the project’s financial viability.
Rapidus’s push for 2nm chip development comes at a time when Intel’s own 20A process (equivalent to 2nm) has been abandoned in favor of 18A (1.8nm). The underwhelming performance of these 1.8nm chips further emphasizes the challenges facing the industry in scaling down chip production.
The necessity of seeking additional funding so early in the project may raise concerns among investors, potentially impacting their confidence in Rapidus’s ability to achieve its ambitious goals.
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