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As per a report from Kyodo News on August 21st, that the Japan-based chip manufacturer Rapidus 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.
Reportedly, Rapidus has requested financing from Japan’s three major banks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, and Mizuho Bank—as well as from the Development Bank of Japan.
Additionally, Rapidus has asked existing shareholders, including Toyota, for additional investment. The response of these shareholders is now a key point of interest.
Rapidus, established in August 2022, is a joint venture funded by eight Japanese companies: Toyota, Sony, NTT, NEC, SoftBank, Denso, NAND Flash maker Kioxia, and Mitsubishi UFJ.
The report further indicates that Rapidus currently relies mainly on government subsidies to advance its projects. To achieve its goal of mass-producing 2nm chips by 2027, a total investment of approximately JPY 5 trillion from both public and private sectors is expected.
If Rapidus secures the requested 100 billion yen in financing, it would mark the first major funding from financial institutions, representing a significant step forward for the company.
Per an earlier report from Nikkei, the Japanese government has so far decided to provide JPY 920 billion in subsidies to Rapidus. Additionally, the eight private Japanese companies, including Toyota, have invested JPY 7.3 billion in the venture.
However, there remains a funding gap of about JPY 4 trillion. Establishing production technology and acquiring customers are challenging tasks, and some banks are cautious about providing financing, which may pose obstacles to meeting the funding requirements.
Nikkei’s report on August 10 also pointed out that Rapidus, which began construction on its 2nm wafer fab in Hokkaido last September, plans to start mass production of 2nm chips by 2027.
The external construction of the facility is expected to be completed in October this year, with the installation of Japan’s first extreme ultraviolet (EUV) lithography equipment scheduled for December. The plan includes introducing several additional EUV machines in the future.
Koike expressed confidence in achieving the 2027 mass production goal and emphasized that Rapidus aims to produce semiconductors at least twice as fast as its competitors, with potential speed increases for smaller batches.
He also addressed that the company will collaborate with Japan’s top material and equipment suppliers to lower costs and produce globally competitive products.
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(Photo credit: Rapidus)
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As the battle of HBM intensifies between memory giants, the competition of NAND is also heating up. According to a report by Korean media outlet etnews, SK hynix is developing 400-layer NAND flash memory, aiming to get the technology ready for mass production by the end of 2025.
Citing sources familiar with the matter, the report notes that SK hynix is currently working with supply chain partners to develop process technologies and equipment needed for 400-layer and above NANDs. As the company plans to apply hybrid bonding to achieve the breakthrough, many packaging materials and components suppliers are expected to enter the new supply chain.
According to the report, SK hynix is reviewing new materials for bonding and various technologies for connecting different wafers, including polishing, etching, deposition, and wiring. With the goal of getting the technology and infrastructure ready by the end of next year, full-scale production for the 400-layer NAND is anticipated to begin in the first half of 2026.
Currently, the Big Three in the memory sector are all trying to push the boundaries on the layers of NAND. Earlier in April, Samsung confirmed that it has begun mass production for its one-terabit (Tb) triple-level cell (TLC) 9th-generation vertical NAND (V-NAND), with the number of layers reaching 290. For now, the company aims to stack V-NAND to over 1000 layers by 2030.
Micron, on the other hand, has announced the 2650 client SSD, its first product built from 276-layer 3D NAND on July 30th. Japanese memory chipmaker Kioxia, after successfully increasing the number of 3D NAND layers to 218 in 2023, even stated that achieving a 1,000-layer level by 2027 would be possible.
In August, 2023, SK hynix showcased its sample of the world’s first 321-layer NAND product. Now, as the limit is expected to be pushed up to 400 layers, the company plans to apply hybrid bonding to the manufacturing, which adopts a “wafer-to-wafer” (W2W) structure, etnews notes.
According to the report, until now, SK hynix has been stacking cells on top of the peripherals, the driving circuit area, using the method of “Peripheral Under Cell (PUC)” to manufacture NAND. The structure is similar to a mixed-use high-rise apartment where the peripheral (commercial space) is at the bottom and the cells (residential units) are stacked on top.
However, as the number of NAND layers increases, the peripheral is prone to be damaged during the cell stacking process due to the high heat and pressure generated during the cell process, the report explains.
Therefore, SK hynix plans to apply hybrid bonding to overcome the issues. By implementing cells and peripherals on separate wafers and then bonding the two wafers together, the method allows the peripheral wafer that drive the cells to be separately manufactured, thus enabling a stable increase in NAND layers.
Regarding the progress on the development of 400-layer NAND, SK hynix stated that it cannot confirm details about its technology development or mass production timeline, the report notes.
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(Photo credit: SK hynix)
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Japanese NAND flash giant Kioxia announced today (August 1st) that the building construction of Fab2 (K2) of its Kitakami Plant in Iwate Prefecture was completed in July. As demand is recovering, the company will gradually make capital investments while closely monitoring flash memory market trends. Kioxia plans to start operation at K2 in the fall of Calendar Year 2025, according to its press release.
A portion of investment for K2 will be subsidized by the Japanese government according to the plan approved in February 2024, according to Kioxia.
In addition, the company notes that some administration and engineering departments will move into a new administration building located adjacent to K2 beginning in November 2024 to oversee the operation of K2.
According to a report from Nikkei on July 31, Kioxia’s Kitakami Plant started production in 2020,with the construction of K2 began in 2022. Initially, K2 was scheduled to commence production in 2023.
However, due to a downturn in the memory market and weak demand for NAND Flash used in smartphones and PCs, Kioxia started to reduce production in October 2022, with the extent of production cuts exceeding 30%. As part of these production reduction measures, Kioxia postponed the production start of the K2 facility.
Nikkei’s report further indicates that with market conditions recovering, Kioxia ended its production cuts in June 2024, and the current production line utilization rate has returned to 100%.
To mass-produce advanced memory products, Kioxia, in collaboration with Western Digital (WD), plans to invest a total of 729 billion yen in the Yokkaichi and Kitakami plants, with the Japanese government providing up to 243 billion yen in subsidies.
The Kitakami plant will produce the most advanced “8th generation” memory, with a monthly production capacity of 25,000 wafers. These will be used in AI data centers, as well as in smartphones, PCs, and automotive applications.
On June 26, according to industry sources cited in a report from Reuters, Kioxia plans to submit an initial public offering (IPO) application to the Tokyo Stock Exchange in the near future, aiming to go public by the end of October. Sources indicate that Kioxia will submit its official IPO application by the end of August, with a target listing date at the end of October.
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(Photo credit: Kioxia)
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To revitalize its domestic semiconductor chip industry, Japan has launched several measures in recent years, including financial subsidies. According to Japanese media reports, many Japanese companies will invest JPY 5 trillion (Around USD 30.96 billion) to develop the semiconductor business.
Nikkei Asia reported on July 8 that eight Japanese companies, including Sony, Mitsubishi Electric, Rohm, Toshiba, Kioxia, Renesas, Rapidus, and Fuji Electric, will invest JPY 5 trillion in the semiconductor field by 2029, driven by the promising prospects of AI, EV, and carbon reduction markets.
As per Nikkei News, based on the capital investment plans from the fiscal 2021 to 2029 of these manufacturers, in order to rejuvenate Japan’s domestic chip industry, these companies will increase their investments in power semiconductor, sensor, and logic chip fields, which are seen as core technologies to the burgeoning sectors such as AI, decarbonization, and EV.
Among these, Sony plans to invest about JPY 1.6 trillion from fiscal 2021 to 2026 to ramp up its CMOS image sensor production capacity. Sony is a globally renowned image sensor manufacturer, and its chip business head, Terushi Shimizu, previously predicted that Sony’s market share in the global image sensor market would reach 60% by the new fiscal year starting April 2025.
In December 2023, Sony held a completion ceremony for the expansion project at its Nagasaki Technology Center (Isahaya City, Nagasaki Prefecture), which produces image sensors. Sony also announced the plan to build a new image sensor production plant in Kumamoto Prefecture, matching the need to expand the Nagasaki plant to improve its supply system. Nikkei News reported in 2022 that Sony planed to invest several hundred billion yen in the new Kumamoto plant to produce smartphone image sensors, with construction expected to start as early as 2024 and production in 2025.
Toshiba and Rohm, positive about the expanding demand for AI data center and the EV market, project to jointly invest about JPY 380 billion to increase the production of silicon (Si) and silicon carbide (SiC) power semiconductors.
In December 2023, Toshiba announced that it had reached an agreement with Rohm to collaborate on manufacturing power devices. Both companies are expected to make efficiency investment totaling JPY 388.3 billion in silicon (Si) and silicon carbide (SiC) power devices fields, aiming to significantly strengthen their supply capacity and complement each other’s production capabilities.
Rohm plans to build a new plant in Miyazaki Prefecture on Kyushu Island and will allocate JPY 289.2 billion in silicon carbide wafer production. Toshiba will invest nearly JPY 100 billion to set up a cutting-edge 300mm wafer manufacturing plant in Ishikawa Prefecture, central Japan.
Mitsubishi Electric plans to invest JPY 100 billion to build a new factory in Kumamoto Prefecture to produce silicon carbide power semiconductor, expected to commence operation in April 2026. Mitsubishi Electric aims to increase its SiC power semiconductor production capacity to five times the 2022 level by 2026. Mitsubishi Electric President Kei Urishima stated, “We will establish a system capable of rival global leader Infineon.”
In 2022, Renesas announced a plan to invest JPY 90 billion to convert its previously closed Kofu factory into a 12-inch wafer plant to meet the growing demand in the power semiconductor field. On April 11 this year, the factory officially resumed operations. Renesas previously estimated that the factory would start mass-producing IGBT and power MOSFET devices in 2025, doubling the company’s overall power semiconductor production capacity.
As to logic semiconductor industry, Japan’s new semiconductor player Rapidus plans to produce 2nm chip in Hokkaido, with a total investment of JPY 2 trillion, of which the Japanese government decided to subsidize JPY 920 billion. Rapidus plans to start trial production of 2nm logic chip in April 2025 and achieve large-scale mass production by 2027.
News
To capitalize on the expanding opportunities in artificial intelligence (AI), electric vehicles (EV), and the carbon reduction market, eight Japanese companies, including Sony and Mitsubishi Electric, plan to invest JPY 5 trillion (around USD 30 billion) in semiconductors. According to a report by Nikkei on July 8, this investment is expected to increase the production of image sensors, power semiconductors, logic semiconductors, and other products.
Reportedly, eight Japanese companies, including Sony, are planning to invest JPY 5 trillion in semiconductors by 2029, driven by the optimistic outlook for the AI and carbon reduction markets. The report compiled by Nikkei surveys the equipment investment plans of eight major Japanese semiconductor manufacturers for the period from 2021 to 2029: Sony, Mitsubishi Electric, Rohm, Toshiba, Kioxia, Renesas, Rapidus, and Fuji Electric.
The report indicates that Sony will invest roughly JPY 1.6 trillion from 2021 to 2026 to increase the production of CMOS image sensors and other products, with plans to build a new factory in Kumamoto Prefecture. Additionally, Japanese manufacturers are expanding the production of power semiconductors in response to the growing AI data center and EV markets.
Toshiba and Rohm plan to invest a combined total of around 380 billion yen to increase production of silicon (Si) and silicon carbide (SiC) power semiconductors. Mitsubishi Electric aims to increase its SiC power semiconductor capacity to five times the 2022 level by 2026 and will invest about 100 billion yen to build a new factory in Kumamoto Prefecture. Mitsubishi Electric President Kei Urushima stated that they aim to establish a system capable of competing with its rival Infineon, which is the global leader in the SiC power products.
Reportedly, Japanese semiconductor companies held a 50% global market share in 1988. However, after the 1990s, they lost the competition to Taiwanese and South Korean manufacturers, leading to their withdrawal from advanced process research and development in the early 2000s. By 2017, Japan’s market share had fallen below 10%.
In recent years, the Japanese government has been actively revitalizing the semiconductor industry. In the field of advanced logic semiconductors necessary for AI, the Japanese government has decided to provide up to 920 billion yen in support to Rapidus. Rapidus plans to begin trial production of 2-nanometer chips in April 2025 and commence mass production in 2027.
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(Photo credit: Mitsubishi Electric)