Japan’s Rapidus Faces Two-Year Deadline for 2nm Mass Production to Compete with TSMC and Samsung

The race for supremacy in the semiconductor industry is heating up as TSMC and Samsung vie to be the first to roll out 2nm technology. Meanwhile, Rapidus has emerged as a notable contender from Japan, enhancing the nation’s profile in leading-edge lithography. Recently, Rapidus announced it had initiated trial production of its 2nm process and plans to gradually establish production lines aimed at boosting output levels. However, similar to the challenges faced by Samsung with its 3nm Gate-All-Around (GAA) technology, uncertainties loom for Rapidus, with experts warning that the company has only two years to launch full-scale production. Failure to do so may result in Japan lagging behind its global competitors.

Rapidus Must Kickstart 2nm Mass Production by 2027

In an effort to propel its 2nm manufacturing capabilities, Rapidus installed extreme ultraviolet (EUV) machines back in December. These machines are pivotal for mass-producing advanced semiconductor wafers. Following installation, the company proudly showcased its first prototype on July 18, signaling its ambitious entry into the elite tier of semiconductor production. The Japanese government has played a crucial role in supporting Rapidus’s aspirations by facilitating various policy initiatives.

In a significant boost, the Japanese administration has pledged a substantial investment totaling 1.7 trillion yen (approximately USD 12 billion) to aid Rapidus. Anticipated support for the remainder of 2025 includes about 100 billion yen (around USD 677.6 million) directed towards achieving 2nm wafer mass production. Despite these generous resources, the company still faces potential setbacks, prompting a cautionary perspective from industry experts.

Professor Hideki Wakabayashi from Kumamoto University and a member of Japan’s Semiconductor and Digital Industry Strategy Committee expressed concerns that if Rapidus falters, it could prompt the nation’s semiconductor and materials firms to relocate overseas. This migration could significantly undermine Japan’s competitive edge in the market.

Establishing production facilities in other countries would not only help those regions employ skilled workers but could also grant foreign governments access to sensitive information regarding cutting-edge technologies. Factors enticing Rapidus to operate outside Japan could include access to a broader talent pool with specialized skills at potentially lower costs.

Furthermore, nations eager for advancements in semiconductor technology may offer attractive incentives to lure manufacturers like Rapidus. However, given the current strong backing from the Japanese government, it seems unlikely that Rapidus will choose to relocate its operations abroad.

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