Core Insights - Rapidus aims to mass-produce 2nm chips by 2027 and is seeking funding from semiconductor-related companies, including Fujifilm, to support this initiative [1][2] - The company has initiated trial production lines for 2nm chips and plans to report on the trial results to partners on July 18 [1][2] - Rapidus was established in August 2022 with investments from eight Japanese companies, and additional funding efforts are underway to secure a total of 1 trillion yen [2] Funding and Investment - Rapidus is targeting to raise 1 trillion yen, with existing shareholders and potential investors like Honda expressing interest in contributing [2] - The estimated funding requirement for achieving the 2nm chip production goal is approximately 5 trillion yen, with the Japanese government committing around 1.72 trillion yen, leaving a funding gap of over 3 trillion yen [2] Market Context - In the advanced wafer foundry sector, TSMC dominates the market, particularly in securing AI chip orders from Nvidia [3] - There is an increasing demand from U.S. clients for alternative suppliers due to the U.S.-China decoupling, highlighting the strategic importance of Rapidus in the semiconductor supply chain [3]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The ongoing US-China trade conflict is described as a "struggle," with a call for emergency plans to assist affected businesses and accelerate policy easing measures [1] - The report highlights the need for Beijing to adopt bolder actions to address unprecedented challenges, including cleaning up the real estate sector and reforming the pension system to support consumption sustainably [5] - The meeting emphasized the importance of stabilizing employment and prices, particularly in light of the significant tariffs imposed by the US [9] Summary by Sections Economic Policy Measures - The report urges the implementation of "more proactive macroeconomic policies" and emphasizes the need to accelerate policy execution [6] - It suggests that the government should expedite the use of special bonds issued by local and central governments [6] - The report maintains predictions for a 50 basis point reserve requirement ratio cut and a 15 basis point interest rate cut in the second quarter, with similar actions expected in the fourth quarter [6] Support for Affected Industries - New structural monetary policy tools and financial instruments will be introduced to support technological development, expand consumption, and stabilize foreign trade [8] - A new relending plan will be launched to promote service consumption and elderly care services [8] - The leadership has committed to increasing the unemployment insurance fund's return ratio to support employment stability for businesses severely impacted by tariffs [8] Agricultural and Labor Market Stability - The report stresses the need to enhance domestic agricultural production to stabilize prices of essential goods, especially in light of the US's high tariffs on Chinese imports [9] - It highlights the challenges posed by the low substitutability of certain US-imported agricultural products and the time required for domestic production adjustments [9] - The report underscores the importance of providing multifaceted support to struggling enterprises, including improving financing channels [10]

Core Viewpoint - Rapidus, a Japan-based semiconductor foundry, aims to mass-produce 2nm chips by 2027, with trial production lines starting on April 1, 2024. The company is in discussions with 40-50 potential clients, including major U.S. tech firms known as GAFAM [1][2]. Group 1: Production Plans and Partnerships - Rapidus plans to produce next-generation 1.4nm chips after the 2nm production, indicating a timeline of approximately 2.5 to 3 years for adopting next-generation technology [2]. - The Japanese government has committed to providing additional support to Rapidus, with a total aid amounting to 1 trillion 822.5 billion yen, including previous assistance [2]. - Rapidus is collaborating with Broadcom to provide trial samples of 2nm products, which could lead to semiconductor production for Broadcom's clients, including Google and Meta [2]. Group 2: Market Position and Competition - Rapidus aims to differentiate itself by achieving production speeds 2-3 times faster than TSMC, which currently dominates the advanced foundry market [1]. - NVIDIA's CEO has expressed interest in potentially outsourcing AI chip production to Rapidus, highlighting the growing need for diversified supply sources amid U.S.-China decoupling [3][5].