Japan and IBM will invest in a factory to produce 2nm chips. The country invests 70 billion yen in factories and other companies such as NEC, Toyota, Sony, NTT, Softbank, Kioxia and MUFG Bank.
The announcement comes after an earlier report for a joint technology research program with the US in which the Japanese government is pumping 350 billion yen. With these initiatives, Japan wants to compete better with and be less dependent on China.
The chip factory, which will be named Rapidus, will only effectively produce chips on a 2 nanometer chip architecture in the second half of this decade. Last year, IBM was the first to show that it could make chips on such a small scale.
Although, later, competitor TSMC also said that it is done with that step, they also want to start mass production in 2025.