Japanese Semiconductor Firm Rapidus Challenges TSMC with 2nm Process, Eyes Potential NVIDIA Adoption

Rapidus is making headlines as the first company in Japan to announce trial production of 2nm semiconductors and the integration of ASML’s cutting-edge EUV equipment. This bold step forward may well position Rapidus as a new supplier for NVIDIA.

Rapidus Sets 2nm Trial Production for 2025 and Targets Commercial Launch by 2027, Following TSMC by Nearly Two Years

Taking a look at the broader landscape of the semiconductor industry reveals that TSMC currently leads the pack, securing big contracts with tech heavyweights. Meanwhile, other contenders like Intel Foundry and Samsung are grappling with organizational challenges, which TSMC is effortlessly leveraging to maintain its dominance. However, there’s a new player on the scene. Rapidus, an up-and-coming semiconductor manufacturer, is stepping up with plans to incorporate ASML’s EUV scanners into its Japanese facility, aiming to position itself as a worthy competitor to TSMC.

A report from Nikkei Asia highlights Rapidus’ plan to have ASML’s state-of-the-art EUV equipment installed by the close of December. This move is a game-changer for Japan’s semiconductor landscape, as ASML’s hardware is amongst the most advanced globally and few have access to it. As for their progression in the realm of 2nm technology, Rapidus is gearing up to start trial production by April 2025, with commercial operations anticipated to kick off by 2027.

Interestingly, NVIDIA has been on the hunt for another semiconductor partner apart from TSMC but has struggled to find the right fit. Now, the tech giant is contemplating collaboration with Rapidus for 2nm chips, thanks to Rapidus’ impressive performance metrics and high yield rates. With NVIDIA eager to diversify its supply network, teaming up with Rapidus seems like a strategic decision, assuming Rapidus can meet expectations.

Rapidus isn’t just attracting attention; it’s beginning to win over clients. IBM has already started to adopt their 2nm nodes, and several other tech companies are expressing interest in what the Japanese firm has to offer. Watching how Rapidus’ journey unfolds will be fascinating, as they have the potential to stand toe-to-toe with established giants like TSMC.