Japanese Semiconductor Firm Rapidus to Challenge TSMC with 2nm Process, Potential NVIDIA Collaboration on the Horizon

The semiconductor industry is witnessing a potential shake-up as Rapidus, a rising Japanese semiconductor firm, gears up to rival industry titan TSMC with its 2nm process. This marks a significant milestone for Japan's chip manufacturing sector, which has struggled to keep pace with global giants. With ASML's EUV (Extreme Ultraviolet) equipment already integrated and 2nm trial production set for April 2025, Rapidus is making a bold entry into a highly competitive arena.

Rapidus’ Strategic Leap: 2nm Process and EUV Integration

Rapidus recently announced the installation of ASML’s state-of-the-art EUV scanners at its Japan-based facility, a critical step in the development of advanced semiconductors. This makes Japan one of the few nations granted access to such cutting-edge technology. The firm plans to kick off pilot production in April 2025, with full-scale commercial production projected for 2027—roughly two years behind TSMC’s timeline.

NVIDIA Shows Interest in Rapidus

What makes this development particularly noteworthy is the potential partnership with NVIDIA, which is actively seeking to diversify its supply chain. As NVIDIA faces increasing demand for high-performance AI chips, the addition of Rapidus to its supply chain could alleviate reliance on TSMC. Early reports from Nikkei Asia suggest that Rapidus’ yield rates and node performance have impressed NVIDIA, making it a viable contender for 2nm production contracts.

For NVIDIA, whose AI hardware demands cutting-edge nodes, Rapidus offers a promising alternative, especially given TSMC’s strained capacity. The potential collaboration with Rapidus could pave the way for Team Green to secure a stable and competitive semiconductor supply.

Industry Adoption and Future Outlook

Rapidus has already attracted interest from IBM, among others, signaling a growing confidence in its 2nm technology. The firm’s ability to deliver on performance and efficiency will be critical in determining whether it can truly compete with established players like TSMC, Intel, and Samsung.

As the semiconductor race heats up, Rapidus has positioned itself as a serious contender, showcasing Japan’s renewed ambition in the global chip-making arena. If successful, it could trigger a major shift in the semiconductor industry, breaking TSMC’s dominance and introducing a new heavyweight into the fold.

Do you think Rapidus has what it takes to compete with giants like TSMC? Could this finally diversify NVIDIA's supply chain? Share your thoughts below!