Feb 27 • 10:30 UTC 🇯🇵 Japan Asahi Shimbun (JP)

Rapidus Faces High Barriers to Mass Production Despite Government Support

Japan's Rapidus, a state-backed semiconductor company, is striving towards mass production of cutting-edge 2-nanometer semiconductors by late 2027, yet acknowledges significant challenges in customer acquisition and production stability.

Rapidus, Japan's government-backed semiconductor manufacturer, has outlined a framework for immediate financial support as it seeks to tackle the formidable barriers to mass production of advanced 2-nanometer semiconductors, scheduled for 2027. While the company announced successful trials of basic components last July, the path to large-scale production is fraught with difficulties that extend beyond just manufacturing technology. As the company works to establish a stable production environment and secure advanced manufacturing equipment, the complexity of creating these state-of-the-art semiconductors—which entail over a thousand steps in production—poses a significant hurdle.

In a recent press conference, President Junji Koike revealed that Rapidus is currently in discussions with over 60 potential customers, primarily overseas, and has submitted estimates to about ten of these companies. He expressed confidence that these engagements will lead to successful mass production strategies by 2027. However, he also cautioned that the company is still in the early stages of this journey, stating, "We are still at the first base," indicating that there is considerable work ahead before the full vision can be realized.

To achieve profitability and ensure a competitive edge in the semiconductor market, Rapidus must enhance its capabilities in miniaturization—a critical factor given the rapidly evolving landscape of semiconductor technology. The need for specialized knowledge and data related to the intricacies of miniaturization and production efficiency has been noted as a significant gap by executives from partner investment firms, highlighting that despite government backing, the success of Rapidus will hinge on their ability to overcome these technical and operational challenges.

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