Rapidus CEO Atsuyoshi Koike stated that the company is negotiating with Google, Apple, Facebook, Amazon, Microsoft, and dozens of other potential clients to enable mass production of advanced semiconductors by 2027.
In an interview, Koike mentioned that the prototype chip production line partially commenced operations on Tuesday at a factory in Hokkaido and will be fully operational within the month. In fact, Rapidus expects to showcase its chip data to customers by mid-July at the latest.
Rapidus Improves Its Manufacturing Methods to Outpace TSMC
The Taiwan Semiconductor Manufacturing Company (TSMC) holds a significant share of the market in manufacturing advanced AI chips. This is due to its sales of wafers to many of the world’s largest technology companies and chip manufacturers.
Additionally, the company plays a crucial role in the semiconductor supply chain by producing cutting-edge chips for some of the most important companies globally, including Apple and Nvidia.
Reports indicate that TSMC aims to produce 2-nanometer products this year. This means that Rapidus will be two years behind. However, the company is confident that it can make up for lost time by enhancing its manufacturing methods.
The Japanese government plans to invest $1.37 billion in Rapidus starting in April this year, enabling the company to achieve its goal of commercial production by 2027.
As artificial intelligence technology becomes increasingly prevalent in daily life, the demand for semiconductors that consume less energy is expected to surge. Furthermore, there is a strong preference for security in the U.S. and China.
TSMC has announced plans to spend $100 billion to bring chip manufacturing to the United States. This decision was made in response to former President Trump’s threats to impose substantial tariffs on semiconductor imports from Southeast Asia, prompting TSMC’s investment.
Simultaneously, clients and the government are pressuring TSMC, the country’s largest chip manufacturer, to expand its product line due to concerns about potential incursions from China. Last year, TSMC opened a new factory in southern Japan worth $8.6 billion. They are now constructing a $20 billion facility to produce better chips.
On the other hand, Japan was once a leader in the hardware industry. In this round, ensuring a stable chip supply has become a matter of commercial and national security. Over the past few years, everything from mobile phones to automobiles has become a significant trade issue.
From the 1980s until the early 1990s, Japan held half of the world’s computer market. Companies like NEC and Toshiba were leaders. However, it now accounts for only about 10% of the market. Nevertheless, it remains a leader in the manufacturing of materials and tools.
Last year, Rapidus CEO Tetsuro Higashi told AFP that the project is Japan’s “last chance” to return its semiconductor industry to the world map. “Japan has fallen behind others by more than a decade. It requires massive funding to catch up,” he said.
TSMC Agrees to Joint Venture Manufacturing
According to reports, Intel and TSMC have decided to collaborate. As part of the deal, TSMC will own 20% of Intel’s Foundry business. The remaining 80% has not been disclosed. However, it is believed that TSMC has been in discussions with fabless chip makers Nvidia, AMD, and Broadcom regarding a potential takeover.
Intel and TSMC have agreed to establish a joint chip manufacturing entity. TSMC will hold a 20% stake in the new company operating Intel’s U.S. facilities.
– Morning Brew ☕️ (@morningbrew) April 3, 2025
Reports indicate that the White House played a crucial role in facilitating this deal. However, it is unlikely that the Trump administration would agree to a transaction that would result in Intel being entirely owned by a foreign company.
Intel’s stock price rose from $20.94 earlier in the day to $22.43. This week, the company’s shares were impacted following its annual visual event. Ironically, the business world speculates that TSMC may soon own the foundry operations it is shutting down.
