[News] Japanese Chipmaker Rapidus to Receive EUV Machine by Year-end, Boosting Hokkaido’s Economy

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According to TechNews, citing a report from Nikkei, the Chitose government stated that approximately 50% of the construction of the pilot production line at chipmaker Rapidus’s Hokkaido plant was completed in September. Construction for other processes, such as chip manufacturing, began in October. Notably, Rapidus is set to start receiving EUV machines in December.

According to the report from Nikkei, the economic growth generated by Rapidus is estimated to reach JPY18.8 trillion for Hokkaido. With approximately 4,000 construction workers at the new plant, new apartments and restaurants are being gradually built to accommodate the needs of Rapidus employees and those from other companies. Additionally, Rapidus aims to transform Hokkaido into a comprehensive hub for semiconductor manufacturing, research and development, and human resource development.

However, the situation remains complicated due to the substantial funding required. According to the report in Nikkei, it is estimated that massproducing 2nm chips requires JPY 5 trillion in funding. As per a report from Kyodo News on August 21st, the Japan-based chip manufacturer is expected to begin mass production of 2nm chips by 2027. To secure the necessary funds for semiconductor production, Rapidus is reportedly seeking JPY 100 billion in financing from banks. 

While Japan’s Ministry of Economy, Trade and Industry has provided subsidies totaling JPY 920 billion, there is still a shortfall of approximately JPY 4 trillion. The central government plans to submit a legislative proposal to parliament to increase subsidies for Rapidus, as noted by the report in Nikkei.

The report from Nikkei indicated that the Japanese government is also considering transferring government-subsidized plants and equipment to Rapidus in exchange for company shares. Masakazu Tokura, president of the Japan Keidanren (Japan Business Federation), stated that the government should provide long-term support to achieve Japan’s goal of revitalizing its semiconductor manufacturing capabilities.

(Photo credit: Rapidus)

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