As the semiconductor industry transitions towards regional diversification and manufacturing flexibility, IBM CEO Arvind Krishna stated that Japanese wafer foundry startup Rapidus is becoming a key player, which is not only crucial for Japan or IBM, but also for the entire global semiconductor ecosystem.
Arvind Krishna warns against relying on a single country/region or supplier, especially in the context of escalating geopolitical tensions. He believes that Rapidus is a crucial alternative in a market that is still highly concentrated among a few manufacturers.
The pilot factory of Rapidus located in Chitose, Hokkaido will be put into operation on April 1, 2025, and is currently undergoing equipment installation and system testing.
The Japanese Ministry of Economy, Trade and Industry has promised to provide Rapidus with up to 802.5 billion yen (approximately 5.71 billion US dollars) in new subsidies. This brings the total government funding to 1.7225 trillion yen to support the deployment of pilot production lines and advanced packaging research and development.
The collaboration between IBM and Rapidus is a long-term strategic initiative aimed at achieving the production of 2nm chips. Since 2023, IBM has been committed to helping this Japanese startup build the necessary ecosystem to achieve commercial scale production by 2027.
Dario Gil, Senior Vice President and Research Director at IBM, stated that Rapidus is expected to reach global benchmarks, including transistor density, by 2027. He emphasized that IBM is committed to helping Rapidus establish technological and business competitiveness by 2027.
IBM also supports talent development by partnering with Rapidus to build a skilled workforce for advanced chip manufacturing.
Mukesh Khare, General Manager of IBM Semiconductor Division and Vice President of Hybrid Cloud Research, pointed out that although TSMC may be the first to achieve 2nm mass production by 2025, there may be significant differences in different process technologies even at the same node. IBM is collaborating with Rapidus to ensure that its platform can provide significant differentiation and competitive advantage.
Mukesh Khare also emphasized the importance of cultivating domestic demand for AI chips in Japan, stating that this is crucial for the long-term development of Rapidus. IBM, which is independently developing AI chips, has been in talks with Rapidus regarding potential cooperation on the demand side.
Arvind Krishna revealed that IBM has deployed AI and proxy tools in backend operations such as procurement and payments, unleashing over $3 billion in productivity gains. The company is also increasing its recruitment efforts in research and development as well as sales to support ongoing AI projects.
Arvind Krishna believes that as chip manufacturing is still concentrated in the hands of TSMC, Samsung, and Intel, public policy must play a central role in helping emerging companies such as Rapidus smoothly complete their early development. For IBM, a resilient semiconductor ecosystem relies on three core pillars: technology transfer, workforce development, and supplier diversification.
