Japanese Rapidus is ready to build a second plant in Japan that will produce 1.4 nm chips

Founded in August 2022, the Japanese corporation Rapidus is now working to build its first enterprise, where it intends to start producing 2nm chips from 2027. Now it is about 80% ready, but if the first plant is put into operation successfully, then Rapidus may build a second plant designed to produce 1.4 nm chips.

Image source: Rapidus

This was announced by the President of Rapidus Corporation, Atusyoshi Koike, as reported by Kyodo News. Earlier at the beginning of the month, he stated that negotiations are underway with at least 40 potential clients who are ready to receive chips produced using 2nm technology from Rapidus, and this is in addition to those that were previously identified. Already next year, the names of Rapidus clients may be revealed when the company begins pilot production of chips using 2nm technology at its first and only plant on the island of Hokkaido.

According to Japanese media reports more than a week ago, Toyota and Denso, which are shareholders of Rapidus, are thinking about the possibility of additional investments in the company’s capital. According to preliminary estimates, to launch mass production of 2nm chips, the Japanese company will need a total of about $33 billion. Of this, subsidies will amount to less than 20%, the rest of the amount should be covered by investor funds and commercial loans. The government is considering the possibility of transferring the equipment purchased with subsidies and the building of the Rapidus enterprise, built with state support, into the ownership of the corporation in exchange for its shares. Japanese Minister of Economy, Trade and Industry Muto Yoji recently announced that the government is considering providing Rapidus with additional financial support, including guarantees for loans from commercial banks.