News｜Japan supports Rapidus in developing next-generation AI chip post-process technology.

The Japanese Ministry of Economy, Trade and Industry (METI) announced that it will provide up to 590 billion yen in support to Rapidus in the fiscal year 2024. The focus of this support will be on the development of "post-process" technology for circuitry, marking Japan's first support in this area. Rapidus is dedicated to developing next-generation post-process technology for artificial intelligence (AI) chips, aiming to integrate multiple chips with different functionalities. This initiative will involve collaboration with domestic equipment manufacturers and material suppliers in Japan to advance chip technology collectively.

Japan holds a competitive advantage in materials and manufacturing equipment technology, which is crucial for post-process technology development. While companies like Taiwan Semiconductor Manufacturing Company (TSMC) lead in circuit miniaturization, leading in post-process technology will contribute to boosting Japan's domestic chip industry.

Rapidus President Junichi Koike stated in a press conference on April 2nd, "Japan has excellent equipment and material manufacturers but has not made breakthroughs in chip development. We hope to work together to contribute outstanding Japanese chips to the global market."

METI simultaneously announced on the same day that it will provide Rapidus with support of up to 590 billion yen in the fiscal year 2024. Rapidus plans to start a trial production line in April 2025 and commence mass production of 2-nanometer cutting-edge chips from 2027. While the focus of government support lies in manufacturing circuits' front-end processes, this support marks the first for the post-process.

Traditionally, chip performance improvements have been mainly achieved through circuit miniaturization. However, with increasing costs and physical limitations, miniaturization has approached its limits. Therefore, Rapidus is focusing on developing technologies such as integrating multiple chips with different functionalities, termed "chiplets," to reduce costs and enhance performance.

Rapidus's focus on post-process technology comes against the backdrop of growing demand for AI chips. AI chips require multiple functionalities such as computation and storage, and integrating multiple chips onto one substrate can efficiently achieve these functionalities. Rapidus is collaborating with the Fraunhofer Association in Germany to obtain key technologies such as wafer grinding, chip bonding, and material development. Additionally, they will collaborate with Japanese material and equipment manufacturers who have strengths in energy-saving materials. Prototype development will leverage the adjacent Seiko Epson Corporation's small liquid crystal panel factory.

In the field of post-process, overseas companies are also actively involved. For instance, TSMC utilizes its technology to manufacture AI chips for NVIDIA in the United States and collaborates with global material producers to develop technologies to improve performance. Samsung Electronics also plans to establish an advanced post-process research base in Yokohama City in 2024.

METI emphasizes support for Rapidus in economic security. There may be risks of disruption in the chip supply chain, and producing the most cutting-edge products in Japan will help maintain stability in the domestic industry. Ken Saito, Minister of Economy, Trade and Industry, stated in a press conference on April 2nd, "This is crucial for Japan's overall industrial competitiveness. METI will fully support their success."

Rapidus stated that it will need 5 trillion yen in funding before commencing mass production in 2027. Despite receiving up to 920 billion yen in support from the government in the fiscal year 2024, they still require more financing. Rapidus executives stated, "In the long term, we will explore raising funds from private financial institutions and conducting an initial public offering (IPO)."