Japan's Rapidus Achieves 2nm Chip Prototyping Milestone, Targeting 2027 Mass Production

Chitose, Hokkaido – Rapidus Corporation, Japan's state-backed semiconductor venture, has initiated prototyping of 2-nanometer (nm) Gate-All-Around (GAA) transistors at its Innovative Integration for Manufacturing (IIM-1) foundry in Chitose, Hokkaido. This significant step, announced on July 18, 2025, positions the company to achieve its ambitious goal of mass-producing cutting-edge logic chips by 2027, aiming to revitalize Japan's advanced chipmaking capabilities. Bloomberg Opinion columnist Cathy Thorbecke highlighted the critical role of precise execution in the industry, stating, "In semiconductor production as in Shakespeare, timing is everything."

The company's IIM-1 facility has seen rapid development since its groundbreaking in September 2023, with the clean room completed in 2024 and over 200 advanced tools, including Extreme Ultraviolet (EUV) lithography machines, connected by June 2025. Rapidus confirmed that early test wafers are already demonstrating expected electrical characteristics, indicating that its process technology development is progressing as planned. This rapid pace is crucial for a newcomer in the highly competitive semiconductor landscape.

Rapidus is collaborating with IBM for its 2nm process technology, with over 150 engineers having trained at IBM's innovation site in Albany, New York. The company also partners with IMEC for expertise in EUV lithography. Rapidus aims to differentiate itself by employing a single-wafer processing approach for all front-end steps, which, despite potentially higher upfront costs, is expected to offer superior control, defect reduction, and yield improvement for 2nm and beyond.

The venture, founded in August 2022 with support from eight major Japanese companies including Toyota, Sony, and SoftBank, has received substantial government funding, totaling approximately JPY 1.72 trillion (around $11.8 billion USD) in subsidies. However, Rapidus estimates a total funding requirement of JPY 5 trillion (approximately $34.5 billion USD) to reach mass production by 2027, indicating a significant funding gap that needs to be addressed. Securing a robust customer base, beyond its initial partnership with Broadcom for 2nm chip samples, remains another critical challenge against established leaders like TSMC and Samsung.

Rapidus plans to release the first version of its process development kit (PDK) in the first quarter of 2026 to support early customers. The company's unique approach, focusing on ultra-short turnaround times and an integrated manufacturing model, is designed to cater to specialized demands and avoid direct competition with industry incumbents. This strategy is vital as Rapidus navigates the complex technological and financial hurdles to establish itself as a global player in advanced semiconductor manufacturing.