Rapidus Seeks Chip Customers as Japan Pushes 2nm Semiconductor Revival

Japan’s Rapidus is expanding partnerships with global chip design companies as the state-backed semiconductor manufacturer races to secure customers for its planned 2-nanometre production facility.

Backed by roughly $15 billion in government support, Rapidus announced partnerships with 17 companies, including U.S. chip design software provider Synopsys and Indian technology group Infosys. The collaborations are designed to help prospective customers develop chips compatible with Rapidus’ advanced manufacturing processes.

The company aims to begin commercial 2nm contract chip production in the second half of the next fiscal year. The project is central to Prime Minister Sanae Takaichi’s strategy to revive Japan’s semiconductor industry and strengthen domestic supply chains.

However, analysts say attracting enough customers remains Rapidus’ biggest challenge. The company will compete against established semiconductor giants including Taiwan Semiconductor Manufacturing Co., Samsung Electronics and Intel. TSMC currently dominates advanced chip manufacturing after decades of developing its technology and production capabilities.

Rapidus CEO Atsuyoshi Koike believes rising semiconductor demand, particularly from artificial intelligence infrastructure, leaves room for another advanced chipmaker. Analysts also see opportunities among smaller customers unable to secure sufficient capacity from TSMC or companies seeking to diversify their semiconductor supply chains.

Potential customers nevertheless remain cautious about shifting production away from proven manufacturers. Rapidus must demonstrate that it can consistently produce advanced chips at commercially viable yields while operating its fabrication facility around the clock.

The company is working with IBM and has already started pilot operations. Koike said preparations for mass production remain on schedule, although industry experts warn that achieving stable production yields is exceptionally difficult even for established manufacturers such as Samsung.

Rapidus’ success could have broader implications for Japan, whose share of the global semiconductor market has fallen from roughly 50% in the 1980s to less than 10% today.

Beyond launching 2nm production, Rapidus must eventually establish a profitable business model. The company is targeting an initial public offering around the fiscal year ending March 2032, while supporters have also raised the possibility of future semiconductor manufacturing operations in the United States.