The global semiconductor industry is becoming increasingly competitive, and the Japanese government recently announced that it will prepare a budget of 332.8 billion yen (about 15.46 billion yuan) to support Rapidus, an advanced chip manufacturing company in the country. The investment is aimed at driving Japan's rise in the 2nm process space, competing with global giants such as TSMC. This move not only reflects Japan's determination to return to the top of the semiconductor field, but will also have a profound impact on the global market landscape.
Strategic investment by the Japanese government with Rapidus' plans
In this investment, the Japanese government plans to directly inject 100 billion yen, and another private shareholders will provide 100 billion yen in matching funds. Rapidus will use the funds to purchase more EUV lithography machines and other key equipment to strengthen its production capacity. Currently, Rapidus is building its first 2nm process fab, IIM-1, which is expected to start trial production in April 2025 and achieve mass production in 2027.
This high investment has made Rapidus's "semi-nationalization" characteristics more and more obvious, with a registered capital of only more than 70 billion yen, and the strong support of the government will greatly enhance the company's R&D and mass production capabilities. Japan's move is not only to inject impetus into its own semiconductor industry, but also to provide diversified options for the global supply chain.
Rapidus' technical advantages and market competitiveness
Rapidus focuses on the 2nm process technology, which is the key to today's AI chips and high-performance computing. The introduction of EUV lithography technology has given it an advantage in the production of ultra-small node chips. The market generally has high hopes for Rapidus, for example, NVIDIA has indicated that it may adopt its 2nm process, which undoubtedly brings strong endorsements to the company.
In contrast, industry giants such as TSMC and Samsung have also invested heavily in the 2nm node. TSMC has plans to mass-produce 2nm chips in 2025, while Rapidus aims to close the gap and even surpass its specifications. The demand for 2nm chips in the global market, especially in the fields of AI, IoT, and cloud computing, will present huge opportunities for Rapidus.
Pictured: Japan bets 332.8 billion yen on Rapidus
The global semiconductor market and Japan's strategic position
According to the World Semiconductor Trade Statistics Organization (WSTS), the global semiconductor market is expected to reach $620.2 billion in 2024, a year-on-year increase of 17%. In this growth trend, advanced process technologies of 2nm and below will become the core driving force for market expansion.
Japan's revival in the field of semiconductors is gradually establishing its new strategic position. From technology patents to industrial policy, Japan's strength lies in its solid technological foundation and long-term government support. With the breakthrough of Rapidus technology, Japan is expected to compete with giants such as TSMC and Samsung in the global market, providing more options for the global semiconductor supply chain.
Funding challenges and future layout
Although Rapidus has made significant progress in technology research and development, the road to mass production of 2nm chips is still full of challenges. It is estimated that 5 trillion yen (about 32 billion U.S. dollars) will be required to complete the large-scale mass production of 2nm chips. The Japanese government has pledged a total of 920 billion yen in support for three consecutive fiscal years, but Rapidus still needs to attract more capital to achieve its long-term goals.
At the same time, the technology trends of the global semiconductor industry are changing with each passing day, such as advanced packaging technology, HBM memory chips and the application of power components, all of which have put forward higher requirements for the future market layout. Rapidus needed to achieve technological breakthroughs in multiple areas to stand out from the global competition.
Editor's Observations & Opinions
In the view of the editor of China Exportsemi, Japan's bet on Rapidus this time is a double competition of technology and capital. For Japan, this is not only a promotion of the revival of the country's semiconductor industry, but also an important contribution to the diversification of the global industrial chain. In the context of geopolitics and industrial security, it is a global consensus to reduce dependence on supply chains in a single region.
However, it will not be easy for Rapidus to catch up with TSMC in a short period of time. TSMC has accumulated deep technical strength and market trust over the years, while Rapidus' technology and mass production capabilities still need time to be verified.
Conclusion
The Japanese government's huge investment in Rapidus is a strategic layout in the global semiconductor industry. With the continuous breakthrough of 2nm process technology, Rapidus not only represents a new hope for the Japanese semiconductor industry, but will also have a profound impact on the competitive landscape of the global market.
In the future, the global semiconductor industry will face more fierce competition and a more diversified development pattern. Whether Rapidus can achieve technological leapfrogging and market share increase with the support of the Japanese government will be an important issue worth paying attention to in the next few years.
