TSMC and Samsung are currently locked in on who will introduce the 2nm technology first, but trailing behind the two semiconductor manufacturing giants is Rapidus, which has put Japan on the map when discussing leading-edge lithography. The company announced last month that it had begun trial production of its 2nm process and will slowly set up production lines to increase output. However, just like how Samsung ran into unscalable obstacles with its 3nm GAA, there is no telling what surprises await Rapidus, with a researcher stating that the latter only has two years to commence full-scale production or Japan will lose the advantage to its competitors.
Rapidus has until 2027 to kick off 2nm mass production; a researcher says Japan’s semiconductor companies will move overseas to resume manufacturing, taking away the country’s edge.
To give its 2nm production the catalyst it needs, Rapidus installed EUV machines in December last year, which are a key component for mass manufacturing advanced wafers. Fortunately, not too long after, the company introduced its first prototype on July 18, and it is now seemingly on its way towards joining the big leagues of semiconductor production. To help Rapidus reach its ambitious goals, the Japanese government has been a tremendous help.
In addition to greenlighting various policies that would make Rapidus reach its target more easily, the government has committed to investing 1.7 trillion yen, which is approximately 12 billion USD. For the remainder of 2025, the company is expected to receive 100 billion yen, which is around $677.6 million, making it a hefty sum to reach mass production of 2nm wafers. Even with the resources at its disposal, Rapidus always runs the risk of failing, and one researcher has chimed in on the consequences if that day ever arrives.
Hideki Wakabayashi, a professor at Kumamoto University in Japan and a member of the Semiconductor and Digital Industry Strategy Committee of the Ministry of Economy, Trade, and Industry of Japan, has said that if Rapidus fails, the country’s semiconductor and materials companies will move overseas to resume their goals, which could diminish Japan’s advantage.
In other regions, if the semiconductor manufacturer sets up shop, it will pave the way for that region’s qualified personnel to become employed at one of the leading firms, while also potentially giving that country’s government access to sensitive information surrounding cutting-edge technology. As for why Rapidus would desire to set its facilities outside of Japan, several factors could be involved, ranging from the flexibility to hire people with a more refined set of skills at a lower cost.
Furthermore, countries that want bragging rights over companies like Rapidus establishing their production lines will likely throw in sweeteners such as amended policies that favor the semiconductor manufacturer. Still, with the Japanese government supporting the company through its challenges, we do not foresee a scenario where Rapidus would decide to leave.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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