{"id":166356,"date":"2025-08-30T10:44:19","date_gmt":"2025-08-30T10:44:19","guid":{"rendered":"https:\/\/teknomers.com\/en\/their-companies-do-not-have-the-same-level-of-scale-as-their-competitors\/"},"modified":"2025-08-30T10:44:20","modified_gmt":"2025-08-30T10:44:20","slug":"their-companies-do-not-have-the-same-level-of-scale-as-their-competitors","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/their-companies-do-not-have-the-same-level-of-scale-as-their-competitors\/","title":{"rendered":"Their companies do not have the same level of scale as their competitors."},"content":{"rendered":"\n<p>The Japan government is making concerted efforts to revive its \u00a0semiconductor industry\u00a0, once a global leader. In the late 1980s, companies like \u00a0NEC\u00a0, \u00a0Toshiba\u00a0, \u00a0Hitachi\u00a0, \u00a0Fujitsu\u00a0, \u00a0Mitsubishi\u00a0, and \u00a0Matsushita\u00a0 controlled an impressive \u00a050%\u00a0 of the global chip market. However, \u00a0today, none of these corporations\u00a0 rank among the industry&#8217;s leaders, which are now predominantly Taiwanese, American, Dutch, South Korean, and German firms.<\/p>\n<p><!-- BREAK 1 --> <\/p>\n<p>Currently, Japan is investing more heavily in its integrated circuit sector than the US, Germany, France, or the United Kingdom\u2014percentage-wise, based on GDP. The US allocates \u00a00.21%\u00a0 of its GDP to semiconductors, Germany \u00a00.41%\u00a0, France \u00a00.2%\u00a0, and the UK a mere \u00a00.04%\u00a0. In stark contrast, Japan dedicates an impressive \u00a00.71%\u00a0 of its GDP to this crucial industry.<\/p>\n<p><!-- BREAK 2 --><\/p>\n<p>Nevertheless, Japan faces significant challenges in competing with Taiwan and South Korea in the integrated circuit market. \u00a0Toshikazu Maeda,\u00a0 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 \u00a0artificial intelligence (AI)\u00a0. He suggests that to adapt effectively, smaller companies must \u00a0merge\u00a0 to create larger, more competitive entities.<\/p>\n<p><!-- BREAK 3 -->  <\/p>\n<h2>Rapidus: Paving the Path for Japan&#8217;s Semiconductor Future<\/h2>\n<p>Japan is home to a plethora of specialized small businesses that supply components to major players like \u00a0ASML\u00a0 and \u00a0Tokyo Electron\u00a0, 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 \u00a0TSMC\u00a0, \u00a0Intel\u00a0, and \u00a0Samsung\u00a0: \u00a0Rapidus Corporation\u00a0.<\/p>\n<p><!-- BREAK 4 --><\/p>\n<div class=\"article-asset article-asset-normal article-asset-center\">\n<div class=\"desvio-container\">\n<div class=\"desvio\">\n<div class=\"desvio-figure js-desvio-figure\">\n<pre><code> &lt;img alt=\"Nuclear fusion reactor advancement\" width=\"375\" height=\"142\" src=\"https:\/\/i.blogs.es\/4420f8\/jt60sa-ap\/375_142.jpeg\"\/&gt;<\/code><\/pre>\n<\/div>\n<\/div><\/div>\n<\/div>\n<p>Established on \u00a0August 10, 2022\u00a0, Rapidus was created specifically to restore Japan&#8217;s prominence in integrated circuits. With an initial capital of \u00a07,346 million yen\u00a0 (approximately \u00a046 million euros\u00a0) contributed by industry giants such as \u00a0Sony\u00a0, \u00a0Toyota\u00a0, \u00a0NEC\u00a0, \u00a0Softbank\u00a0, \u00a0Kioxia\u00a0, \u00a0Denso\u00a0, and \u00a0Mufg Bank\u00a0, the company represents a significant collective investment from leading stakeholders in technology, automotive, and telecommunications.<\/p>\n<p><!-- BREAK 5 --><\/p>\n<div class=\"article-asset-summary article-asset-small article-asset-right\">\n<div class=\"asset-content\">\n<p class=\"sumario_derecha\">Japan&#8217;s specialization in small businesses provides crucial components for major manufacturers like ASML and Tokyo Electron.<\/p>\n<\/p><\/div>\n<\/div>\n<p>Rapidus is actively constructing an integrated circuit manufacturing facility in \u00a0Chitose, Hokkaido\u00a0, with plans to produce \u00a02 nm semiconductors\u00a0. Although the first prototypes are ready, full-scale manufacturing is expected no sooner than \u00a02027\u00a0. By that time, industry heavyweights like \u00a0TSMC\u00a0, \u00a0Samsung\u00a0, and \u00a0Intel\u00a0 are anticipated to have already produced circuits with comparable or superior specifications.<\/p>\n<p><!-- BREAK 6 --> <\/p>\n<p>What sets Rapidus apart is its commitment to full automation in its manufacturing process. \u00a0Atsuyoshi Koike\u00a0, the company&#8217;s president, has highlighted their intention to utilize \u00a0robots\u00a0 and \u00a0AI\u00a0 to establish an entirely automated production line focused on \u00a0AI-specific 2 nm chips\u00a0. The goal is to manufacture integrated circuits not only more quickly but also at a lower cost and higher quality.<\/p>\n<p><!-- BREAK 7 --><\/p>\n<p>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 \u00a066%\u00a0 compared to the timelines offered by TSMC and Samsung.<\/p>\n<p><!-- BREAK 8 --><\/p>\n<p>If Rapidus successfully achieves its objectives and competitors do not enhance their efficiencies, it stands to deliver its semiconductors in \u00a0one-third\u00a0 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.<\/p>\n<p><!-- BREAK 9 --><\/p>\n<p>For further information, refer to the insightful articles in <a rel=\"noopener, noreferrer nofollow\" href=\"https:\/\/www.scmp.com\/tech\/tech-trends\/article\/3323127\/japans-niche-chip-gear-makers-should-consolidate-reap-rewards-ai-boom-marumae-ceo?module=perpetual_scroll_0&amp;pgtype=article\" target=\"_blank\">SCMP<\/a> and <a rel=\"noopener, noreferrer nofollow\" href=\"https:\/\/www.xataka.com\/\" target=\"_blank\">Xataka<\/a>, which explore Japan&#8217;s ambitious plans in the semiconductor and \u00a0nuclear fusion\u00a0 industries in detail.<\/p>\n<p><br \/>\n<br \/><a href=\"https:\/\/teknomers.com\/category\/general\/\" rel=\"dofollow\">General News &#8211; 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Japan government is making concerted efforts to revive its \u00a0semiconductor industry\u00a0, once a global leader. In the late 1980s, companies like \u00a0NEC\u00a0, \u00a0Toshiba\u00a0, \u00a0Hitachi\u00a0, \u00a0Fujitsu\u00a0, \u00a0Mitsubishi\u00a0, and \u00a0Matsushita\u00a0 controlled an impressive \u00a050%\u00a0 of the global chip market. However, \u00a0today, none of these corporations\u00a0 rank among the industry&#8217;s leaders, which are now predominantly Taiwanese, American, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":165196,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36399],"tags":[1723,1201,1044,1960],"class_list":["post-166356","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-companies","tag-competitors","tag-level","tag-scale"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/166356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=166356"}],"version-history":[{"count":0,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/166356\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/165196"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=166356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=166356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=166356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}