[News] Rapidus Focuses on Small Clients, Diversifies into Japan to Mitigate US Geopolitical Risks

Henri Richard, head of Rapidus Design Solutions, the US subsidiary of Japan’s semiconductor foundry startup Rapidus, and former Chief Marketing Officer at processor giant AMD, indicates that Rapidus aims to position itself as a filler of market gaps during the interview with global media The Register.

Rapidus Design Solutions, established by Rapidus in this month, is expected to bolster ties with US semiconductor design companies and wafer manufacturing technology providers like IBM. Henri Richard reportedly notes that the AI boom is boosting the advanced semiconductor foundry market, albeit with understated demand and ongoing capacity constraints. Thus, in this market trend, he asserts that even if these technologies don’t necessarily confer a competitive edge, the limitations in capacity alone should suffice to ensure Rapidus’ success.

Established in August 2022, Rapidus was jointly founded by eight Japanese companies, including Toyota, Sony, NTT, NEC, Softbank, Denso, Kioxia (formerly Toshiba Memory Corporation), and Mitsubishi UFJ, who invested collectively in its establishment. As per Rapidus’ plan, they aim to commence mass production of 2-nanometer process technology in 2027, significantly lagging behind major global players like TSMC, Intel, and Samsung.

TSMC and Samsung previously planned to mass-produce 2nm chips in 2025, while Intel is anticipated to be the first to achieve commercialization of 2nm chips. Industry sources cited by the The Register’s report also view this timing as unfavorable for Rapidus.

However, Henri Richard believes that the semiconductor process technology has reached a turning point. Assessing the success of suppliers solely based on production timelines is narrow-minded; competitiveness stems from various factors beyond production schedules.

Based on these factors, Rapidus positions itself as a fill-in player in the advanced manufacturing market, targeting small AI chip design companies as its primary market. While competitors focus on serving large clients, Rapidus aims to win over these smaller clients by offering comprehensive support services. By serving numerous small chip design companies, Rapidus can better understand the specific needs of AI chip users, rather than insisting on the latest process technology for all chips.

Henri Richard emphasizes that Rapidus itself has limited scale and cannot initially serve too many clients simultaneously. It is expected that Rapidus’s initial client base will not exceed 6 companies, allowing them to accumulate experience and capabilities.

Although there are geopolitical issues currently, establishing facilities in the US is not on Rapidus’s immediate agenda. Meanwhile, Japan represents a relatively favorable geographic location for Rapidus, offering clients a risk-diversification option.

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(Photo credit: Rapidus)