Japanese chipmaker Rapidus will open a business base in Silicon Valley by the end of March, its chief executive officer said Monday, as it seeks to expand its sales network in the United States in anticipation of demand growth.
Rapidus CEO Atsuyoshi Koike said Silicon Valley is critical for the Japanese government-backed developer of next-generation chips due to its ability to provide access to customers.
Rapidus aims to start mass-producing advanced chips with a circuit line width of 2 nanometers in 2027. It is currently building a plant in Chitose, Hokkaido, while jointly developing semiconductors with IBM.
Koike unveiled the plan at a meeting organized by the Japanese government of chip and AI firms in San Francisco.
Officials from 21 Asia-Pacific economies and business leaders are gathering in the city this week to discuss how to make supply chains more robust for crucial items such as semiconductors after many nations were hit by parts shortages caused by the COVID-19 pandemic.
Japanese industry minister Yasutoshi Nishimura said at the meeting, "It is critically important to boost the supply capacity of cutting-edge semiconductors, not only for achieving carbon neutrality but for ensuring economic security."
"We have seen more and more examples of (private-sector) cooperation between Japan and the United States. We believe that the government should further accelerate this momentum," Nishimura added.
Japan is aiming to bolster domestic chip production, giving support to Rapidus and Taiwan Semiconductor Manufacturing. The government has allocated ¥1.85 trillion for chip-related assistance in a supplementary budget for the current fiscal year ending in March.
The Japanese government-organized gathering was attended by top executives at chipmakers such as Advanced Micro Devices, Western Digital, and Nvidia among others. Participants agreed to promote Japan-U.S. cooperation in the development of semiconductors and artificial intelligence.