The Rise of Japan’s Semiconductor Ambitions: Evaluating the Launch of Rapidus Amidst TSMC’s Expansion

The Strategic Expansion of Semiconductor Production in Japan

As Taiwan Semiconductor Manufacturing Company (TSMC) progresses with the construction of its facilities in Kumamoto, Japan is also witnessing the rise of its own semiconductor foundry, Rapidus, in Chitose, Hokkaido. Yuzo Fukuzaki, a researcher at Rapidus’s U.S. entity, confidently asserts that Rapidus could commence mass production by 2027, signaling Japan’s renewed commitment to regaining its semiconductor prowess. Despite lagging behind global leaders in semiconductor production, Fukuzaki emphasizes that Rapidus is not a venture of novices but a gathering of diversified experts set to innovate the next generation of products.

Historical Context and the Vision for Rapidus

Japan’s dominance in the semiconductor market during the 1980s faded due to competitive cost disadvantages. Currently, 90% of next-generation semiconductors are manufactured in Taiwan. With Japan only capable of producing semiconductors down to 40 nanometers, Rapidus’s ambitious goal to achieve 2-nanometer production has stirred both excitement and concern. The initiative, heavily influenced by U.S. governmental support…