[News] Rapidus to Begin 2nm Test Production in April, Success Critical for Securing Investments

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Rapidus is building its facility in Chitose City, Hokkaido, with the aim of mass-producing 2nm chips by 2027. According to a Nikkei report, the company’s 2nm test production will start in April 2025, just a few months away. This test production is highlighted as a pivotal milestone for Rapidus, as it will determine whether the company can successfully manufacture chips using such an advanced process.

As outlined in the report, Rapidus might need to demonstrate its capability to manufacture 2nm chips, particularly given the substantial government funding it has received and the further investments that it still needs. The results of the upcoming test production are likely to be pivotal in attracting additional investors and securing future customers, as the report notes.

A major milestone in Rapidus’s progress toward 2nm chip production took place on December 14, 2024, when the company received its first extreme ultraviolet (EUV) lithography machine from leading chipmaking equipment supplier ASML. According to the report, the installation is anticipated to be completed by the end of March. Significantly, Rapidus is the first Japanese company to obtain this cutting-edge chip manufacturing machine.

Rapidus has been making active preparations for its 2nm test production. The report mentions that Rapidus Chairman Tetsuro Higashi stated the company has dispatched around 150 engineers to IBM’s research facility in Albany, New York, to receive training in 2nm chip manufacturing.

However, despite these efforts, Rapidus continues to face major challenges, including securing loans and investments from the private sector, as noted in the report. Expenditures are projected to increase toward the end of 2025 as the company prepares for mass production in 2027, which will involve additional purchases of EUV equipment.

Challenges in Securing Major Clients

Notably, one of the key challenges for Rapidus, as outlined in the report, is that its current clients are predominantly venture companies, such as Tenstorrent—a startup specializing in AI chip design—rather than major firms like AWS or Apple.

The report indicates that Rapidus’s current strategy focuses on manufacturing specialized AI chips rather than multipurpose chips like those made by NVIDIA. However, demand for specialized chips is generally limited in scale, presenting another hurdle for Rapidus: achieving cost efficiency with small-batch production.

On the other hand, the report notes that Rapidus’s current shareholders—Toyota, NTT, Sony, Denso, and Kioxia—could potentially become customers for its chips.

Read more

• [News] Japan’s Rapidus to Receive First EUV in mid-December, with ASML Planning Service Center Nearby
• [News] Japan to Back Chip Industry with $65 bln Support Plan

(Photo credit: Rapidus)