Japan backs a 74-year-old CEO to push 2nm chip production three times faster than TSMC, aiming to revive its domestic semiconductor industry

Japan’s push to regain leadership in advanced semiconductor manufacturing is centered on Atsuyoshi Koike, 74, the face of Rapidus, a state-supported venture aiming to join the world’s top chipmakers as it moves into mass production next year. The company, founded in 2022, reached a key milestone in July by producing its first 2nm prototype chip using technology developed in collaboration with IBM.

From prototype to mass production

Rapidus is racing to complete its first fabrication facility on Japan’s northern island of Hokkaido. Under this year’s plan, the company will provide potential customers with the information and tools needed to begin designing chips it expects to manufacture in the future.

However, producing a new 2nm prototype is only the first step. Industry experts say scaling such complex and sensitive chips to an economically viable level remains a major challenge. Today, 2nm chips are widely viewed as the “gold standard” for processors used in AI data centers, smartphones, and autonomous vehicles.

Only a limited number of companies can manufacture at industrial scale, including TSMC in Taiwan and Samsung Electronics in South Korea. Rapidus will need to demonstrate to customers that it can compete with those established manufacturers.

“Ultra-fast” wafer processing as a differentiator

Koike’s stated competitive edge is speed. He says Rapidus will process each wafer individually and move it through subsequent steps immediately, rather than using batch processing where wafers are handled together across multiple printing and layer-etching stages.

Koike aims to complete in 15 days tasks that other manufacturers take up to 50 days. He plans to monetize this approach with a premium pricing model, likened to the premium passengers pay for Japan’s Shinkansen high-speed rail.

“I will charge the Shinkansen fee,” Koike said.

Technology partnership and training

Rapidus has partnered with IBM to obtain the technology and know-how needed for 2nm production. Engineers at Rapidus are currently being trained with IBM colleagues in New York as preparation for the next phase of development.

Koike also pointed to lessons from Japan’s earlier semiconductor era, saying Japanese chipmakers became too conservative and isolated. He argued that they should have partnered with American firms to maintain competitiveness, calling that “a big misstep.”

Funding gap and scale requirements

Despite strong government backing, financing remains a major hurdle. As of February this year, Rapidus had raised about $1.7 billion, including more than $600 million from the Japanese government, along with investments from private companies including Sony, Toyota, and NTT.

Koike acknowledged that Rapidus will need tens of billions of dollars more to reach the targeted production scale. For comparison, TSMC is expected to invest up to $56 billion this year alone to meet global chip demand.

Broader semiconductor ambitions

Koike’s ambition extends beyond Hokkaido. He is considering building a lunar fabrication facility by the 2040s, arguing that the vacuum environment and low gravity in space could simplify chip production and improve productivity.

“I am thinking about it very seriously,” the executive said.

What to watch next

With semiconductor sovereignty a central focus for the United States, China, and Japan, the outcome for Rapidus will depend on whether it can convert its prototype progress and speed-focused approach into full-scale production capability. The first clear test is expected to begin when the full-scale production line comes online next year.