Rapidus 2nm Push Reshapes Semiconductor Equipment Market

Japan's Rapidus Secures 17 Global Partners for 2nm Chip Production, Backed by $15B State Funding 

TOKYO, Japan October 7, 2026 — Japan's state-backed chipmaker Rapidus has announced partnerships with 17 global companies, including U.S. chip design software firm Synopsys and India's Infosys, as it advances its bid to launch 2-nanometre chip production and establish itself as a credible player in the global Semiconductor Manufacturing Equipment Market. The move intensifies focus on advanced fab equipment demand and supply-chain localization across Asia-Pacific. 

Rapidus, established in 2022 and backed by approximately $15 billion in Japanese government research and development support including an additional $4 billion approved by Japan's industry ministry in April 2026 is targeting the launch of 2nm chip production in the second half of the next fiscal year. 

The company's fabrication plant is located in Chitose, Hokkaido, and Rapidus continues to collaborate with IBM as it progresses through pilot operations. CEO Atsuyoshi Koike expressed confidence in the scale of market opportunity, stating that "one or two companies are nowhere near enough" to meet global demand for leading-edge chips. 

Japan's global semiconductor market share has declined from approximately 50% in the 1980s to less than 10% today, underscoring the strategic urgency behind Prime Minister Sanae Takaichi's industrial policy to rebuild the country's chip sector. The Rapidus program is central to that ambition, with analysts noting that a successful ramp-up would generate sustained demand for advanced lithography, deposition, and metrology equipment across the domestic supply chain. 

According to Next Move Strategy Consulting, the global semiconductor manufacturing equipment market was valued at USD 102.74 billion in 2023 and is projected to reach USD 180.45 billion by 2030, expanding at a CAGR of 8.4% from 2024 to 2030. 

Key Highlights: 

• Rapidus has formalized partnerships with 17 global companies, including Synopsys and Infosys, to support chip design services and attract manufacturing contracts for its 2nm fab in Hokkaido. 

• Total Japanese government R&D support for Rapidus has reached $15 billion, following an additional $4 billion allocation approved in April 2026, reflecting the scale of national commitment to semiconductor self-sufficiency. 

• The company is targeting 2nm chip production launch in the second half of the next fiscal year, competing in a segment currently dominated by TSMC, Samsung Electronics, and Intel. 

• Rapidus has set a target for an initial public offering around the financial year ending March 2032, contingent on achieving commercial production viability and stable manufacturing yields. 

Analyst Insight: 

According to analysts at Next Move Strategy Consulting, Rapidus' partnership strategy with 17 global design ecosystem firms represents a calculated effort to de-risk customer adoption by lowering the barrier to chip design on its 2nm platform. NMSC analysts note that while commercial traction remains to be demonstrated, the initiative signals a structural shift in how emerging foundries are approaching market entry prioritizing ecosystem development alongside manufacturing readiness. 

Furthermore, NMSC analysts observe that the AI-driven surge in semiconductor demand is creating a window of opportunity for new leading-edge manufacturers. Customers seeking supply chain diversification away from TSMC particularly those with smaller order volumes or lower priority status represent a viable initial customer base for Rapidus, which could translate into incremental but meaningful equipment procurement cycles for front-end tool suppliers operating in Japan and globally. 

Industry Outlook: 

Rapidus' 2nm program, if successfully executed, would mark Japan's re-entry into leading-edge semiconductor fabrication for the first time in decades, with direct implications for the global semiconductor manufacturing equipment market. The Hokkaido fab's operational ramp would require sustained procurement of advanced lithography systems, etch tools, deposition equipment, and metrology solutions categories that are central to the market's projected growth trajectory through 2030. 

However, significant technological and commercial uncertainties persist. Analysts at Omdia have noted that while TSMC will continue to dominate the majority of the leading-edge market, a viable secondary manufacturer could serve the underserved segment of customers unable to secure TSMC capacity. The broader success of Japan's semiconductor industrial strategy encompassing Rapidus and related government-backed initiatives will be a key determinant of Asia-Pacific's equipment demand profile over the next decade. 

Source: Reuters 

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Prepared By: Sanyukta Deb