Japan's Rapidus "To Establish Silicon Valley Sales Base Within the Year"... Focus on Impact of US-China Summit

Hiring Software and Design Talent Locally
US-Japan 'Economic 2+2' Meeting to Be Held on the 14th

Japanese semiconductor company Rapidus announced plans to establish a business base in Silicon Valley, USA, within this year, according to reports by Nihon Keizai Shimbun and others on the 14th. With the Asia-Pacific Economic Cooperation (APEC) summit held in San Francisco, USA, on the 15th (local time) approaching, and ahead of the meeting between the US and Chinese leaders, the US has declared it will not decouple (exclude from supply chains) China, drawing attention to Rapidus's future response.

[Image source=Reuters Yonhap News]

According to reports, Rapidus made this announcement on the 13th (local time) at a semiconductor-related meeting hosted by Japan's Ministry of Economy, Trade and Industry held in San Francisco, USA. The event was attended by senior executives from eight companies, including US semiconductor firms such as Nvidia and Western Digital, as well as companies from Canada and Japan.

Rapidus's decision is a measure aimed at future customers, particularly major US IT companies like Google and Apple that operate primarily in Silicon Valley. They judged that establishing a base in the US is essential to quickly connect planning and design stages with development and manufacturing by understanding customer needs from the outset.

Atsuyoshi Koike, President of Rapidus, said, "There are many potential client companies in the US. We want to expand our business globally."

Rapidus also plans to hire software and design engineers locally to manufacture semiconductors tailored to customer requirements. While Rapidus is scouting semiconductor engineers within Japan, due to a shortage of personnel, it plans to secure talent in software and design fields in the US rather than Japan.

Currently, Rapidus is employing 200 people at IBM's research and development base in New York State, pushing forward the development of cutting-edge 2-nanometer (nm; 1 nanometer is one billionth of a meter) semiconductors. President Koike stated that the development is progressing smoothly.

Rapidus aims to establish manufacturing technology in the US by the end of next year, start operating a prototype production line at its Hokkaido production base in Japan from 2025, and begin the world's first mass production in 2027.

Rapidus was launched in November last year with a total joint investment of 7.8 billion yen from eight major Japanese companies including Toyota Motor Corporation and NTT, aiming for the domestic production of cutting-edge semiconductors. It has also formed technical cooperation partnerships with US-based IBM and Belgium-based research institute IMEC.

Meanwhile, the US and Japan, which have focused on building semiconductor supply chains while countering China, will hold an 'Economic Track 2+2' meeting of foreign and economic ministers on the 14th, coinciding with the APEC summit. Attendees include US Secretary of Commerce Gina Raimondo, US Secretary of State Antony Blinken, Japan's Minister of Economy, Trade and Industry Yasushi Nishimura, and Foreign Minister Yoko Kamikawa.

At this meeting, the US and Japan plan to issue a joint statement committing to "build transparent, strong, and sustainable supply chains." While laying the foundation for their supply chain strategy, they are expected to emphasize countering "non-market policies and practices," keeping China in mind. They plan to establish subsidy standards and create supply chains with conditions for fair competition, including environmental considerations.

This content was produced with the assistance of AI translation services.