A new Japanese chipmaker, Rapidus, is emerging as a potential competitor to established semiconductor foundries like TSMC and Samsung. The company is targeting major tech players, including Apple, Google, Meta, Amazon, and Microsoft, to secure contracts for the mass production of chips by 2027 using a cutting-edge 2nm process node.
This is significant since TSMC and Samsung are set to produce 2nm chips later this year, and Rapidus aims to join this elite group with the help of a substantial government investment of 200 billion yen (approximately $1.37 billion). Despite being behind TSMC’s offerings in 2nm technology, Rapidus’ CEO, Atsuyoshi Koike, is optimistic about the company’s prospects.
The Japanese government and leading firms like SoftBank and Sony have financially backed Rapidus with the intention of establishing a competitive edge in the foundry market. Rapidus is also exploring the production of AI chips, hoping to provide an alternative for companies like Apple, which currently relies heavily on TSMC for its chip needs.
The geopolitical landscape adds urgency to Rapidus’ mission. With the rising ambitions of China to become self-sufficient in semiconductor production, concerns loom about TSMC’s strategic viability in the face of regional instability.
Rapidus is set to kick off test production of its 2nm chips soon, having set up a prototype production line in Hokkaido. Securing a partnership with a giant like Apple would not only validate Rapidus as a serious player in the foundry business but also provide alleviate Apple’s concerns about its dependency on TSMC.
The possibility of having an additional chip manufacturing option is appealing for Tim Cook and other Apple executives as they navigate the evolving semiconductor landscape.