Japan’s Rapidus faces uphill battle to fill its $15B chip factory
Japan's Rapidus, backed by a $15 billion state investment, aims to address a critical question regarding its tech ambitions: whether it can secure enough customers for its cutting-edge chip factory. The company announced partnerships with 17 firms, including US chip design software company Synopsys and India's Infosys, to assist customers in designing chips.
However, the biggest hurdle remains in convincing customers to adopt Rapidus' 2-nanometre contract chip production, slated for the second half of the next fiscal year. Analysts note that TSMC, Samsung, and Intel currently dominate the market, making it challenging for Rapidus to attract customers. Despite these obstacles, Rapidus CEO Atsuyoshi Koike remains confident in the market demand for an additional leading-edge manufacturer.
The project's success could bolster Japan's semiconductor industry, diversify supply chains, and potentially benefit related sectors. However, significant technological and market challenges must be overcome before Rapidus can claim commercial success, with a potential IPO anticipated in 2032.
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