A Strategic Injection for Next-Gen Chips
The Japanese Ministry of Economy, Trade and Industry, known as METI, has officially selected Rapidus Corporation as the designated operator for the stable production of high-speed information processing semiconductors. This selection comes with a significant financial boost: 100 billion yen has been allocated in the initial fiscal year 2025 budget. This funding will be administered through the Information-technology Promotion Agency, marking a critical step in Japan's strategy to reclaim its position in the global semiconductor market.
The Race to 2 Nanometer Technology
Rapidus is not just aiming for standard chip production; they are targeting the cutting-edge 2 nanometer logic semiconductor generation. Currently, the mass production of such advanced nodes is dominated by industry giants like TSMC and Samsung. By securing this government backing, Rapidus plans to accelerate its development and subsequently attract private investment. The goal is to establish a domestic supply chain for these ultra-advanced chips, which are essential for artificial intelligence, autonomous driving, and high-performance computing.
Roadmap to Mass Production and IPO
Rapidus has outlined a clear and ambitious schedule for the coming decade:
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Fiscal Year 2026 (Late): Release of the Process Design Kit, also known as PDK, allowing chip designers to start creating circuits for the new node.
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Fiscal Year 2027 (Late): Commencement of mass production for 2 nanometer generation logic semiconductors.
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Fiscal Year 2028 (Early): Start of mass production for advanced packaging technologies, which are crucial for enhancing chip performance.
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Fiscal Year 2029: Target for achieving a positive operating cash flow.
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Fiscal Year 2031: Target for achieving positive free cash flow and launching an Initial Public Offering, or IPO.
