Rapidus: Japanese company wants to rival TSMC in 2 nm chip processes

Rapidus, an emerging Japanese company in the semiconductor sector, took a significant step forward by announcing experimental production of 2nm chips for 2025, with commercial production scheduled for 2027.

The initiative puts the company on a collision course with global leader TSMC, which has already consolidated its position as the preferred supplier for giants such as NVIDIA, Apple and AMD.

The installation of ASML’s EUV (extreme ultraviolet lithography) equipment in Japan marks a unique moment for the country in the high-tech scene.

2nm experimental production

As highlighted by Nikkei AsiaRapidus will be one of the few companies in the world to operate with ASML’s advanced lithography equipment by the end of December 2024.

The devices are essential for manufacturing chips at nanometric scales, such as the 2nm process. The installation and operation of this equipment shows that Japanese interest is very serious in returning to protagonism in the semiconductor industry.

“With 2nm chips on the horizon, Rapidus signals that Japan is ready to regain its leading position in the global semiconductor industry”

TSMC, in turn, has already shown notable advances, reducing production costs for its 2nm chips by 6%. This difference has been passed on to customers, reinforcing their competitiveness.

Furthermore, the Taiwanese manufacturer maintains its plan to introduce 1.6nm nodes in 2026, solidifying its technological leadership.

An interesting aspect of Rapidus’ entry into the market is the possibility of partnership with NVIDIA. According to information from the Cteethe North American company, which traditionally depends on TSMC, seeks to diversify its supply chain.

The adoption of 2nm chips from Rapidus could be a strategic move, considering the high performance and yield rates reported by the Japanese manufacturer.

In parallel, TSMC would already be negotiating with NVIDIA to manufacture GPUs based on the Blackwell architecture in its new plant in Arizona.

Therefore, the search for multiple supplier options is the logical consequence of NVIDIA’s effort to mitigate risks in its supply chain to meet the growing demand for advanced chips.

Market adherence is optimistic

In addition to NVIDIA, companies such as IBM have already shown interest in exploring Rapidus’ 2nm nodes, expanding the market prospects for the Japanese manufacturer. Although commercial production is only scheduled for 2027, initial movements indicate that Rapidus has the potential to compete with giants such as TSMC and Samsung.

The Japanese company’s advancement, therefore, optimistically denotes the growing demand for cutting-edge semiconductors, driven by the evolution of artificial intelligence and other technologies that require scale of processing.

According to ASML, the global semiconductor market could reach US$1 trillion by 2030, a scenario that promises significant opportunities for new players in the sector.

Source: Nikkei Asia