The Japan government is making concerted efforts to revive its semiconductor industry , once a global leader. In the late 1980s, companies like NEC , Toshiba , Hitachi , Fujitsu , Mitsubishi , and Matsushita controlled an impressive 50% of the global chip market. However, today, none of these corporations rank among the industry’s leaders, which are now predominantly Taiwanese, American, Dutch, South Korean, and German firms.
Currently, Japan is investing more heavily in its integrated circuit sector than the US, Germany, France, or the United Kingdom—percentage-wise, based on GDP. The US allocates 0.21% of its GDP to semiconductors, Germany 0.41% , France 0.2% , and the UK a mere 0.04% . In stark contrast, Japan dedicates an impressive 0.71% of its GDP to this crucial industry.
Nevertheless, Japan faces significant challenges in competing with Taiwan and South Korea in the integrated circuit market. Toshikazu Maeda, General Director of Marumae, a specialized chip equipment manufacturer, notes that many Japanese firms lack the necessary scale to be competitive and are not growing amidst the booming field of artificial intelligence (AI) . He suggests that to adapt effectively, smaller companies must merge to create larger, more competitive entities.
Rapidus: Paving the Path for Japan’s Semiconductor Future
Japan is home to a plethora of specialized small businesses that supply components to major players like ASML and Tokyo Electron , two leading manufacturers of photolithography and wafer processing equipment. Maeda emphasizes that while production capacity is modest, there exists a promising entity ready to challenge the giants like TSMC , Intel , and Samsung : Rapidus Corporation .
<img alt="Nuclear fusion reactor advancement" width="375" height="142" src="https://i.blogs.es/4420f8/jt60sa-ap/375_142.jpeg"/>Established on August 10, 2022 , Rapidus was created specifically to restore Japan’s prominence in integrated circuits. With an initial capital of 7,346 million yen (approximately 46 million euros ) contributed by industry giants such as Sony , Toyota , NEC , Softbank , Kioxia , Denso , and Mufg Bank , the company represents a significant collective investment from leading stakeholders in technology, automotive, and telecommunications.
Japan’s specialization in small businesses provides crucial components for major manufacturers like ASML and Tokyo Electron.
Rapidus is actively constructing an integrated circuit manufacturing facility in Chitose, Hokkaido , with plans to produce 2 nm semiconductors . Although the first prototypes are ready, full-scale manufacturing is expected no sooner than 2027 . By that time, industry heavyweights like TSMC , Samsung , and Intel are anticipated to have already produced circuits with comparable or superior specifications.
What sets Rapidus apart is its commitment to full automation in its manufacturing process. Atsuyoshi Koike , the company’s president, has highlighted their intention to utilize robots and AI to establish an entirely automated production line focused on AI-specific 2 nm chips . The goal is to manufacture integrated circuits not only more quickly but also at a lower cost and higher quality.
Extreme ultraviolet lithography (EUV) equipment from Dutch firm ASML will be utilized, ensuring nearly all manufacturing processes are automated. However, validation, interconnection, and packaging of chips typically remain manual in most manufacturing environments. Rapidus claims its automation technology can reduce chip delivery times by 66% compared to the timelines offered by TSMC and Samsung.
If Rapidus successfully achieves its objectives and competitors do not enhance their efficiencies, it stands to deliver its semiconductors in one-third of the time taken by rival companies. This could become a significant advantage for Rapidus, allowing it to expand noticeably in a highly competitive market. Nevertheless, these plans remain speculative for now, although Rapidus appears to have laid a strong foundation for its future growth.
For further information, refer to the insightful articles in SCMP and Xataka, which explore Japan’s ambitious plans in the semiconductor and nuclear fusion industries in detail.