Japan's Semiconductor Comeback: Rapidus and Kumamoto

Two projects, one in Hokkaido and one in Kyushu, show how Japan is rebuilding its role in the world's most advanced chip supply chain.

Published October 26, 2026 at 9:12 AM JST | By Tokyo Paul

Quick answer: Japan's semiconductor comeback rests on two main projects: TSMC's Kumamoto plants run by JASM, which began mass production in late 2024, and Rapidus in Hokkaido, which showed a 2 nanometer prototype in July 2025 and targets mass production in fiscal 2027. Government subsidies in the trillions of yen support both efforts.

Chips sit inside phones, cars, appliances and data centers, so it is no surprise that readers keep asking what Japan is doing to get back into the game. Japan once led the industry, then watched production move overseas, and now it is rebuilding with partners and new companies. The story is easy to follow if you split it into two threads: a Taiwanese partnership in Kumamoto and a homegrown startup in Hokkaido. This guide explains each, what is confirmed, and what is still a plan as of autumn 2026.

Why Japan wants chips back

Japan led the global chip industry in the 1980s, a point often repeated in industry coverage, and then lost ground as the business shifted toward specialized design companies and large contract manufacturers. The country kept strengths in materials, equipment and sensors, yet the most advanced logic chips were made elsewhere.

Today the motivation is practical. Carmakers, electronics firms and data center operators want a dependable supply close to home, and the government sees advanced chips as a pillar of economic planning. That is why public money, company investment and foreign partnerships have come together in the past few years.

The result is a mix of approaches: invite a leading overseas maker to build in Japan, and also support a new Japanese company aiming at the leading edge. Each tackles a different part of the market.

JASM and the Kumamoto story

Japan Advanced Semiconductor Manufacturing, known as JASM, was established in December 2021 and is based in Kikuyo, Kumamoto Prefecture. TSMC holds the majority, with Sony Semiconductor Solutions, Denso and Toyota as minority shareholders. The site sits next to a Sony semiconductor factory, in a region that has long been tied to chipmaking and is sometimes called Silicon Island.

The first plant began production in December 2024, according to reference sources, making chips on processes labeled 12 and 16 nanometer and 22 and 28 nanometer. These are mature nodes, which means they are widely used in image sensors, cars and industrial equipment rather than in the newest smartphones.

For Kumamoto, the arrival of a global manufacturer is a major event for the region, and local and national news have followed it closely. Readers who want details on local effects should look to prefectural announcements.

The second Kumamoto fab and the 3 nanometer plan

The second JASM plant was announced in 2024 and is under construction. Reports in early 2026 said TSMC planned to upgrade it to a more advanced 3 nanometer process. Trade press citing the Yomiuri newspaper put the investment near 17 billion US dollars, up from an earlier plan focused on 6 to 12 nanometer chips, while Taiwan's economic ministry was reported to have approved the change at the end of March 2026.

Reports also said the fab would begin equipment installation and come online around 2028, with planned capacity in the range of 15,000 wafers a month. TSMC's chief executive reportedly linked the shift to rising demand for artificial intelligence when he met the Japanese prime minister in February 2026.

These figures come from press coverage rather than a single final schedule, so they are best read as plans. Japan had already approved subsidies of up to 732 billion yen for this second plant in 2024, according to trade reporting.

Rapidus: a Japanese startup aiming at 2 nanometers

Rapidus was founded in August 2022 by eight Japanese companies: Denso, Kioxia, MUFG Bank, NEC, NTT, SoftBank, Sony and Toyota. In December 2022 it announced a joint development partnership with IBM for 2 nanometer technology, and its factory is in Chitose, near New Chitose Airport in Hokkaido, where groundbreaking took place in September 2023.

On July 18, 2025, the company confirmed Japan's first prototype chip using 2 nanometer gate-all-around transistors, made at its IIM-1 fab with extreme ultraviolet lithography equipment from ASML. Reporting at the time noted that no customer contracts had been announced.

Rapidus says its plan is to offer smaller-volume 2 nanometer production with shorter turnaround, a service aimed at customers who need fast design cycles rather than giant volumes. That niche is part of its pitch to differ from the big contract manufacturers.

What government support looks like

Public funding is large and is described in several steps. In April 2026, Japan's industry ministry approved an additional 631.5 billion yen for Rapidus development, and a trade report put cumulative government research and development support at about 2.35 trillion yen. Earlier Japanese news agency coverage described extra assistance and loan guarantees on top of the amounts already committed.

Because figures are reported in different ways, readers should treat totals as rounded and check the Ministry of Economy, Trade and Industry for current numbers. What is clear is the direction: public money is paired with private investment from the founding companies and loans.

Support covers more than factories. Funding also goes to chiplet technology, advanced packaging and design projects, which means the programs aim to build a wider ecosystem rather than a single plant.

Timelines to watch

Rapidus has stated a target of mass production of 2 nanometer chips in fiscal 2027, with its packaging operations expected to follow in the second half of the fiscal year. Japan's fiscal year runs from April to March, so this corresponds to the period beginning in April 2027.

In April 2026, an analysis center opened beside the IIM-1 fab and Rapidus Chiplet Solutions began full-scale operations. Rapidus has also been reported to consider a second plant, possibly starting construction as early as fiscal 2027, aiming at even finer processes later. These are plans and could change.

On the Kumamoto side, the key markers are the completion of the second plant and the start of 3 nanometer output. Anyone following the story can compare company announcements with ministry releases to see which dates have firmed up.

How the two projects fit together

Reports suggest the two efforts target different markets. JASM focuses on proven manufacturing processes for customers in Japan and abroad, and now plans a more advanced node, while Rapidus is a new company trying to reach the leading edge with a distinct service model. One brings an experienced operator, and the other builds a new capability.

Together they support a wider ecosystem of material suppliers, equipment makers and designers across Kyushu and Hokkaido. Chipmaking sites are working industrial facilities rather than tourist attractions, so most readers will follow progress through news rather than visits.

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Frequently Asked Questions

What is Rapidus?

Rapidus is a Japanese company founded in 2022 by eight firms, including Toyota, Sony, NTT and SoftBank, to make advanced 2 nanometer chips in Chitose, Hokkaido. It showed a prototype in July 2025 and targets mass production in fiscal 2027, which begins in April 2027.

What does JASM do in Kumamoto?

JASM is a company led by TSMC, with Sony, Denso and Toyota as minority shareholders. Its first plant in Kikuyo, Kumamoto, began production in late 2024 on mature nodes used for image sensors and cars. A second plant is under construction, with reports of a planned upgrade to 3 nanometer technology.

Can tourists visit the chip factories?

Chip factories are controlled industrial sites, and neither Rapidus nor JASM is described as a public attraction. Kumamoto and Chitose both have regular tourism, so visitors can enjoy the region and follow the chip projects through official news pages.

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