Review of Building the 1st Production Plant in Chitose City
Following Samsung, TSMC, and Intel, Entering 2nm Semiconductor Competition
[Asia Economy Reporter Jeon Jinyoung] As the site selection for the factory of Japan's semiconductor alliance 'Rapidus' is attracting great attention both inside and outside Japan, local media reported that Rapidus is considering building a factory in Hokkaido.
On the 16th, TV Tokyo exclusively reported that Naomiichi Suzuki, Governor of Hokkaido, is scheduled to visit Rapidus headquarters in Tokyo to discuss attracting the factory. Rapidus agreed last December to cooperate with the US company IBM to acquire 2-nanometer (nm, one billionth of a meter) technology and is currently selecting a site for a production plant aiming for mass production in 2027.
Koike Atsuyoshi, President of Rapidus, is holding a meeting with IBM officials and economic bureaucrats in Washington on the 5th of last month. [Image source=Official website of Japan Rapidus]
If Rapidus builds a factory in Hokkaido, TSMC will produce 12 to 28-nanometer semiconductors in Kumamoto, and Rapidus will produce 2-nanometer semiconductors, enabling overall competitiveness. In the global semiconductor market, a competitive structure will be established with Rapidus joining Samsung, TSMC, and Intel in the race for mass production of cutting-edge 2-nanometer semiconductors. Atsuyoshi Koike, President of Rapidus, declared in an interview with Nihon Keizai (Nikkei) that "2-nanometer semiconductors will be mass-produced in the latter half of 2020."
In the case of Chitose City, where Rapidus and Governor Suzuki are discussing, more than 260 companies, including electronic parts and device manufacturers, are located in the industrial complex, which is a strength. Since Denso, an investor in Rapidus, and the silicon wafer manufacturer SUMCO also have factories in the Chitose industrial complex, high expectations exist for synergy. Transportation is convenient as New Chitose Airport is only a 10-minute drive away.
Above all, the abundance of groundwater in this area is considered a significant geographical advantage, as water supply is an essential element for semiconductor production. President Koike stated in an interview with Yomiuri, "We will select a location with stable supply of water and electricity, which are essential for semiconductor production, and convenient transportation."
Of course, since various regions in Japan are competing to attract the Rapidus factory, Rapidus plans to make a final decision on the factory site by the end of this month after discussions with Governor Suzuki and subsequent evaluations.
Japan is currently making joint efforts by the government and companies to revive its past semiconductor glory. Rapidus is a joint venture established by eight major Japanese companies, including Sony, Toyota, Kioxia, and SoftBank, to promote semiconductor localization. The Japanese government invested 70 billion yen (661.4 billion KRW) in Rapidus. Additionally, the government has supported 476 billion yen (4.575 trillion KRW), which is 40% of the 1.2 trillion yen investment for the construction of the TSMC factory.
Japan's semiconductor sales share accounted for more than half of the global market in 1988, but due to restrictions such as the US-Japan semiconductor agreement, it currently remains at about 10% as of 2019.
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