RESEARCH TRIANGLE PARK – IBM is partnering with Rapidus, a Japan-based semiconductor firm backed by the Japanese government, to help develop and produce powerful chips that IBM announced a year ago.

The deal comes amidst growing tension between the U.S. and China over chips and increasing efforts to produce more chips in America. Financial terms were not disclosed.

However these chips will be produced in Japan at some point in the next few years.

Big Blue’s chip breakthrough: IBM unveils smaller, more powerful semiconductor

“IBM is honored to be partnering with Rapidus on developing the next generation of semiconductor technologies and helping to position Japan as a leader in one of the world’s most strategic technology areas,” said Darío Gil, senior vice president and director of Research at IBM, in the announcement. “This collaboration is critical to ensure a geographically balanced global supply chain of advanced semiconductors, built through a vibrant ecosystem of like-minded companies and nations.”

The emphasis is on 2 nanometer chip tech developed by IBM, the first developed at that scale.

IBM says the chip “is projected to achieve 45% better performance or 75% more energy efficiency than leading 7 nm chips.”

However, MIT and Taiwan chip firm Taiwan Semiconductor Manufacturing Company say they have developed an even smaller one.

MIT, Taiwan chip firm say they top IBM’s chip breakthrough

Atsuyoshi Koike, president and CEO of Rapidus, noted. “This is a long-desired international collaboration, truly essential for Japan to once again play a vital role in the semiconductor supply chain. I am fully confident that this collaboration will pave the way for our goal of contribution to the well-being of humanity through advanced logic semiconductors produced with technologies jointly developed with IBM.”

IBM and Rapidus scientists and engineers will work jointly in Japan and at a nanotech facility in New York.

“This 2 nm technology is intended to be market-leading and will be compatible with industry standard offerings. Rapidus expects to start mass-production of its 2 nm technology in the latter half of the 2020s,” the companies said.

IBM operates one of its largest campuses in RTP and employs thousands of people across North Carolina.

New York is home to IBM’s chip research efforts.

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