Rapidus is sticking to its plan to begin mass-producing 2-nanometer chips in the second half of 2027, and expects its first customers to be mostly in the United States, where demand tied to artificial intelligence is strongest. That’s according to its board chairman, Tetsuro Higashi, speaking on October 21 in Tokyo, per Reuters. Higashi said the project is running almost on schedule, but gave no customer names, volumes, or signed contracts.
Rapidus’s first customers in 30 seconds
- Rapidus is targeting the second half of 2027 to mass-produce 2nm chips at its Chitose plant in Hokkaido.
- Chairman Tetsuro Higashi expects the first customers to be mostly U.S. AI companies.
- No customers have been announced; in March the company said it was talking to more than 60 companies.
- Japan’s government is preparing another 400 billion yen in capital, according to Japanese press reports.
Higashi, a former president of Tokyo Electron, spoke during the Q&A session at the annual partners’ meeting of investment firm Fiducia GrowthTech. According to Reuters, he said talks are also progressing with Japanese companies, including computer-sector manufacturers, to supply them with chips. On demand, he sounded relaxed: the market is going to grow a lot, he said, so he isn’t too worried.
The U.S., the Market Rapidus Has Been Chasing Since 2024
The fact that the first customers would be in the United States fits what Rapidus has been doing for a while. In April 2024 it set up Rapidus Design Solutions in Santa Clara, in Silicon Valley, led by Henri Richard, a former sales and marketing executive at AMD and IBM, tasked with winning customers and helping them with design. The company justified the choice at the time by pointing to the concentration of AI chip companies in the area. Its 2nm technology also comes from its collaboration with IBM, with which it has worked in Albany, New York.
What’s still missing is a named customer. In March, its CEO, Atsuyoshi Koike, told Japanese outlet MONOist that Rapidus was in talks with more than 60 companies, mostly in high-performance computing, AI, and edge, and that around ten had received preliminary price quotes. According to that report, most were foreign companies, and only a few of the ones with budget approved were Japanese. None of those talks has turned into an announced order yet. To help push that step forward, Rapidus launched CORE, an ecosystem with 17 design partners such as Cadence, Synopsys, Infosys, and Wipro, in early October, meant to bridge the gap between customers and the fab.
More Public Money to Reach 2027
The timeline depends heavily on the Japanese state. In February, Rapidus announced a 267.6 billion yen funding round, of which 100 billion yen came from the Information-technology Promotion Agency (IPA), under the Ministry of Economy, Trade and Industry (METI), and 167.6 billion yen from 32 private companies such as Canon, Fujitsu, NTT, SoftBank, and Sony.
This week it emerged that METI wants to go further. According to the Yomiuri Shimbun, cited by Seoul Economic Daily, the ministry has put forward a plan to inject an additional 400 billion yen in capital, spread between 2027 and 2029, which would bring total public investment to 650 billion yen. That capital would serve as the base for Rapidus to seek around 2 trillion yen in commercial bank loans to expand its production lines. The ministry is considering an IPO in 2031. These are plans that still have to go through the budget process, not approved appropriations.
A Node TSMC, Samsung, and Intel Already Make
The comparison is unavoidable. TSMC, Samsung, and Intel already produce at 2nm or equivalent nodes, so Rapidus will arrive later and without a track record of volume manufacturing. Its sales pitch is speed: the company champions a production model with small, customized batches, with wafer-by-wafer processing and both the front and back end of fabrication under one roof, to deliver new products faster. Over the summer it was already pointing to 2nm wafers for around $20,000 in 2027.
Higashi also talked about the environment around the Chitose plant. According to Reuters, he said Rapidus isn’t trying to copy what happened in Kyushu around TSMC’s plant, but that it’s working with other players to build something like a science park in Hokkaido. The real test will come in 2027, when it becomes clear whether that timeline translates into delivered chips and customers willing to put their name on it.
Frequently Asked Questions
When will Rapidus start mass-producing 2nm chips?
Its target is the second half of 2027, at its Chitose plant in Hokkaido. Its chairman says the project is running almost on schedule.
Who will Rapidus’s customers be?
The company hasn’t announced any. It expects the first ones to be mostly U.S. AI companies, and it is also negotiating with Japanese manufacturers.
How much public money has Rapidus received?
In the February 2026 funding round, the state contributed 100 billion yen in capital. According to Japanese press reports, the government is planning another 400 billion yen, for 650 billion yen in total.
Who is Tetsuro Higashi?
He is the chairman of Rapidus’s board and a former president of Tokyo Electron, one of the largest makers of semiconductor manufacturing equipment.
Sources:
- Reuters (via Yahoo! Finance Japan): Rapidus 2nm mass production “almost on schedule,” first customers to be mostly in the U.S. — chairman
- Rapidus: Rapidus Secures 267.6 Billion Yen in Funding from Japan Government and Private Sector Companies
- Rapidus: Rapidus announces U.S. subsidiary and opens Silicon Valley office
- Rapidus: Rapidus CORE
- Seoul Economic Daily: Japan to Inject Additional 400 Billion Yen Into Chipmaker Rapidus
- TrendForce: Rapidus reportedly secures ¥167.6B private funding, 60 customers in talks, 10 receive preliminary quotes
