Rapidus Aims to Challenge TSMC and Samsung with 2nm Chip Samples for Broadcom

Rapidus plans to supply 2nm chip samples to Broadcom

Japanese foundry Rapidus is preparing to provide 2nm chip samples to US semiconductor giant Broadcom, after it began trial production, which is scheduled for April 2025 and mass production expected by 2027, Nikkei Asia reports. To stabilize its operations and achieve profitability, Rapidus is actively trying to secure substantial and reliable customers. The AI boom drove Broadcom to become the fifth-largest player in the global semiconductor industry, with its market value surpassing US$1 trillion in December 2024. Collaborating with Broadcom could allow Rapidus to expand its reach and supply chips to Broadcom's clients such as Google and Meta This would mark a significant breakthrough for Rapidus, as its current collaborations have primarily been with smaller startups. Atsuyoshi Koike, president of Rapidus, highlighted that a growing number of customers are seeking to broaden their outsourcing options for advanced chip manufacturing beyond TSMC, a shift that plays to Rapidus' advantage. Japanese Companies partner to build AI Infrastructure In addition, Rapidus has officially announced a basic agreement with Japan's AI unicorn startup, Preferred Networks (PFN), and AI service provider Sakura Internet, aimed at providing domestically produced AI infrastructure. The cutting-edge AI processors in PFN's new "MN-Core" series will be manufactured by Rapidus and deployed within Sakura's data centers. Sakura Internet will integrate the AI chips produced by Rapidus into its AI servers, with data centers powered by renewable energy to minimize CO2 emissions. Additionally, the company will reduce power consumption by utilizing outside air for cooling the servers. Still, whether Rapidus can succeed in mass-producing 2nm chips remains uncertain. The company is actively working to persuade potential customers. Currently, Rapidus has established a business presence in Silicon Valley and is in negotiations with approximately 30 to 40 companies for manufacturing contracts.

Japanese Chip Firm Rapidus To Send 2-nanometer Samples To Broadcom & Compete With TSMC

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. Reports in the Japanese media suggest that Japan's chip manufacturer Rapidus aims to provide AI chip designer Broadcom with 2-nanometer chip samples as soon as this June. Taiwan's TSMC and South Korea's Samsung are the only firms capable of manufacturing 2-nanometer chips right now, and both of them are yet to start mass production. Sources quoted by The Nikkei report that Rapidus is working with US firm IBM to produce 2-nanometer chips, and the latest information follows an earlier report in November of Rapidus receiving Japan's first EUV machines from the Dutch chip manufacturer ASML. TSMC, Samsung Face Competition As Japanese Chip Maker Aims To Enter 2-nanometer Chip Manufacturing Market TSMC is currently slated to start 2-nanometer mass production later this year with the first chips available in products in 2026. When compared to TSMC's 3-nanometer manufacturing process, products manufactured with the 2-nanometer node have smaller feature sizes and a new transistor design. The 3-nanometer products feature a FinFET transistor design, while TSMC will use a new nanosheet transistor design in the 2-nanometer chips. Nanosheets increase the contact area between a transistor's gate and source, reducing leakage to improve overall power efficiency and performance. Like TSMC, Samsung's 2-nanometer products will also use an upgraded transistor design. Samsung will use gate-all-around-FinFET (GAAFET) transistors for its 2-nanometer products. The firm has developed these in partnership with IBM, and its 2-nanometer products are also expected to enter mass production later this year after it installed chip manufacturing machines in Q4 2024. Since scaling up chip production is a slow process, firms like TSMC gradually scale production and cater to the demands of their strongest customers. Naturally, this creates a gap between the supply and demand for chips manufactured using the latest technologies. Japan's Rapidus appears to be attempting to capitalize on this shortfall as it is aiming to start 2-nanometer sample production in April. It also aims to send the first samples to Broadcom in June. Broadcom's shares soared by 38% in December after it surprised investors with its AI chip plans. CEO Hock Tan outlined that his firm aims to ship as many as one million AI chips by 2027 to earn anywhere between $60 billion to $90 in its fiscal year 2027. Rapidus also appears to be targeting this expected boom in the demand for AI chips. While it is planning to ship 2-nanometer samples to Broadcom, the firm aims to start 2-nanometer production in 2027. Mega fabs like TSMC enjoy the advantage of not only significant resources but also expertise, which lets them regularly upgrade their technologies and smoothly churn out the latest chips. The Japanese firm, backed by eight Japanese firms, including Toyota and Sony, also aims to expand its inventory of ASML's advanced EUV chip manufacturing machines. These machines are indispensable for manufacturing the latest chips. To facilitate Rapdius, ASML is also expected to open a new service center in Japan.