Prototype Developed by Rapidus: Steady Progress Shown toward Mass Production of Advanced Chips

Editorial

16:54 JST, August 24, 2025

Japan’s industrial competitiveness is greatly affected by cutting-edge semiconductors. It can be said that steady progress toward domestic production of such chips has been demonstrated, as a prototype has been successfully made.

It is hoped that efforts to advance this technology further will be made and that progress will lead to mass production.

Last month, Rapidus Corp., which aims to produce cutting-edge chips domestically, unveiled a prototype of its 2-nanometer semiconductors. One nanometer is one-billionth of a meter. The company said it confirmed that a key component controlling electrical signals functioned properly.

The smaller the nanometer number, the higher the semiconductor’s processing capabilities. As Japanese chipmakers have only achieved production of 40-nanometer semiconductors at best, domestic mass production of 2-nanometer chips is considered a significant challenge.

Rapidus, which is fully backed by the government, was established in 2022 with investment from companies such as Toyota Motor Corp. and Sony Group Corp. The demonstration of the steady progress on technological development is likely to have major significance in tackling the key challenges of securing customers and raising funds.

Mass production of the chip is projected to require about ¥5 trillion in funding. The government has already earmarked up to roughly ¥1.7 trillion in financial support.

More investments and other funding are needed from the private sector, but Rapidus has not been able to secure enough cooperation yet, partly because there has been strong skepticism about the profitability of its business.

It is important for the company to carefully explain the prospects for mass production based on the latest success.

To place the project on track, it is also essential to attract new customers.

Cutting-edge semiconductors with high information-processing capabilities are indispensable products in fields that will pave the way for Japan’s future, such as artificial intelligence, autonomous driving technology and drug discovery. It is hoped that such efforts will be made as expediting the development of prototypes tailored to customer needs.

The company plans to start mass production of the advanced chip in 2027, but there are many technical challenges to overcome. In reality, even Taiwan Semiconductor Manufacturing Co. (TSMC), which has overwhelming competitiveness in semiconductor contract manufacturing, is at best capable of mass-producing 3-nanometer chips.

The manufacturing process for 2-nanometer chips is extremely complex. Rapidus will likely need to work on the development of advanced technology in order to improve the semiconductor yield — the percentage of non-defective products.

The importance of domestic production of cutting-edge semiconductors has increased dramatically.

U.S. President Donald Trump is looking to boost semiconductor production in his country by imposing high tariffs on chips. Likewise, other countries have stepped up efforts to corral semiconductor production.

From the perspective of economic security, Japan has included greater investment in the United States in a tariff deal that the two countries concluded after talks. It is crucial for Japan and the United States to cooperate in drawing up strategies to strengthen production bases and supply chains for chips.

(From The Yomiuri Shimbun, Aug. 24, 2025)