When the IBM PC and shoulder pads were big, Japan led the chip industry. It’s trying to get back there now
Summary
Rapidus, a Japanese foundry newcomer, is racing to revive Japan’s semiconductor manufacturing prowess. The company says it began pilot production of 300mm wafers using IBM-derived 2nm gate-all-around transistor technology and aims for mass production in the second half of 2027. Rapidus is pairing its fab work with advanced packaging and chiplet solutions, releasing process design kits (PDKs) to support customers, and benefiting from substantial government funding to shore up domestic capacity. Meanwhile, global giants such as TSMC and Samsung continue to expand in Japan, underscoring the competitive and geopolitical stakes.
Key Points
- Rapidus started pilot production of 2nm-class 300mm wafers and targets mass production in H2 2027.
- The company uses IBM’s 2nm gate-all-around process via a strategic partnership rather than inventing the node from scratch.
- Rapidus is building advanced packaging and chiplet capabilities to assemble multi-die semiconductors and improve power, area and thermal characteristics.
- Japan’s industry ministry approved ¥631.5 billion in additional funding to support Rapidus’ fab development.
- Rapidus plans to offer lower-volume runs and faster iteration cycles, appealing to customers who don’t want large minimum orders on bleeding-edge nodes.
- TSMC is also expanding production in Japan (3nm and mature nodes), so Rapidus will enter a competitive but growing domestic ecosystem.
Content summary
In the 1980s Japan dominated chip manufacturing; the landscape shifted with the rise of the fabless/foundry model and new global players. Rapidus aims to reverse that decline by combining a modern fab (IIM-1) with a chiplet/advanced-packaging arm and design-partner support teams. The company has leveraged IBM’s R&D on gate-all-around 2nm process technology to shorten the development timeline and is preparing a full PDK release later this year so designers can adapt ahead of volume production.
Rapidus’ strategy emphasises flexibility: offering smaller-volume production and faster feedback to designers, which could be attractive for projects that cannot commit to the large minimum buys required by major fabs on new nodes. This approach, plus heavy government backing, aims to create sovereign capacity while helping Japan re-enter high-end semiconductor manufacturing.
Context and relevance
Semiconductor capacity is now seen as a strategic asset globally. After pandemic-era shortages, countries from the US to Europe and Japan are subsidising fabs to reduce supply-chain risk and secure geopolitical leverage. Rapidus’ push reflects that trend: it isn’t just about tech pride, it’s about national resilience. For chip designers, the addition of a 2nm-capable, lower-volume option in Japan could change sourcing strategies and provide an alternative to the big three foundries. For investors and policy watchers, Rapidus is a case study in how public funding, foreign tech partnerships and new business models intersect in a capital-intensive industry.
Why should I read this?
If you care where the silicon in future servers, phones or AI boxes will come from, this is worth five minutes. Rapidus is a neat example of how governments, legacy research (hello IBM), and startup energy can try to reboot an entire industrial stack. We’ve skimmed the noise and pulled out the bits that matter — who’s funding it, what tech they’re using, and why it could actually change supply-chain choices.