Japan’s Rapidus Poised to Challenge TSMC and Samsung in the Chip Race

Rapidus, Japan’s bid to establish a homegrown alternative to TSMC and Samsung Foundry, is evolving into a sweeping national industrial initiative—one reminiscent of ambitions often discussed in the United States but realistically achievable only by countries such as China, Taiwan, and South Korea.

The project aims to construct a cutting-edge logic semiconductor foundry, with plans to begin commercial production at the 2-nanometer process node in 2027. The manufacturing facility is currently under construction in Chitose, near Sapporo on Japan’s northern island of Hokkaido. Widely cited—though not officially confirmed—reports in the Japanese media suggest Rapidus is targeting 1.4-nanometer production before the end of the decade.

Founded in 2022, Rapidus is backed by a coalition of eight major Japanese corporations alongside strong government support. Its private investors include Sony; Toyota and its semiconductor subsidiary Denso; NAND flash producer Kioxia, formerly part of Toshiba; national telecom operator NTT; telecom equipment and industrial software firm NEC; investment conglomerate SoftBank; and Mitsubishi UFJ, Japan’s largest banking group.

Shortly after its founding, Rapidus and America’s IBM announced a “joint development partnership” to commercialize IBM’s 2nm semiconductor process technology in Japan.

Like much of Japan’s semiconductor sector, Rapidus is embedded in the global ecosystem that originated in Silicon Valley. What distinguishes the company is its determination to restore Japan’s position at the forefront of logic integrated circuit design and manufacturing, using technologies capable of producing the world’s most advanced AI processors.

Japanese firms such as NEC, Hitachi, and Mitsubishi Electric once dominated global semiconductor markets in the 1990s, before ceding leadership to South Korean competitors and a new wave of US-driven innovation.

While Japan has retained a critical role in semiconductor manufacturing equipment and materials, geopolitical tensions—particularly involving China—have exposed the limits of this position. Japan can no longer securely depend on chips produced in Taiwan by TSMC, nor is full reliance on the United States a sustainable alternative.