Rapidus Bets Big on 2nm Chips Despite Zero Mass-Production Experience

Rapidus, a Japanese semiconductor company, is attempting to produce 2nm chips despite having no mass-production experience. This effort has raised eyebrows as it received a significant amount of taxpayer money and government support, with the government planning to invest 2.9 trillion yen by fiscal 2027.

Private companies have invested 7.3 billion yen in Rapidus, while the government's planned total support, combining equity investment and R&D subsidies, is worth 397 times more. To compensate for its lack of experience, Rapidus is importing technology from IBM and others and adopting a production method different from TSMC's.

The company's target timeframe for mass production at the cutting-edge 2nm generation is set for the latter half of fiscal 2027, with a latecomer like Rapidus struggling to catch up by following the same path as established companies. This represents Japan's single biggest gamble in semiconductor policy.