From agriculture to semiconductor hub: Japan bets big on Hokkaido
What's the story
Japan is investing heavily in Hokkaido, its northernmost island, to transform it into a global hub for advanced semiconductors. The move comes as part of the country's effort to revive its chip-making capabilities and reshape its economic future. The government has already pumped $12 billion into Rapidus, a little-known company backed by major Japanese corporations such as Toyota, Softbank, and Sony.
Project details
Rapidus to build Japan's 1st cutting-edge chip foundry
The investment in Rapidus will be used to construct a state-of-the-art semiconductor factory, or "fab," in Chitose, a small city on Hokkaido. The location was chosen for its water and electricity infrastructure as well as its scenic beauty. The fab will be completely covered in grass to blend with Hokkaido's landscape, according to Rapidus CEO Atsuyoshi Koike.
Technological advancement
Major milestone in semiconductor technology
A major milestone for Rapidus was the delivery of an extreme ultraviolet lithography (EUV) system from Dutch company ASML. The high-tech machinery helped the company achieve its biggest accomplishment yet: the successful production of prototype two nanometer (2nm) transistors. These ultra-thin chips are at the cutting edge of semiconductor technology and allow devices to run faster and more efficiently.
Production goals
Aim to mass produce 2nm chips by 2027
Despite some skepticism, Rapidus is confident that it can mass-produce these advanced 2nm chips by 2027. The company has partnered with Hokkaido University and others to train new workers in this field. However, Japan's government is also investing heavily in the chip industry, $27 billion between 2020 and early 2024, to help companies like Rapidus grow and succeed in the global market.
About
Hokkaido produces over half of Japan's dairy output
Hokkaido is long known as Japan's agricultural heartland. It produces over half of the country's dairy output. Winters transform it into a playground of ski resorts and ice-sculpture festivals, while summers bring fields of lavender, poppies, and sunflowers. Today, construction cranes dot the landscape as factories, research centers, and universities focused on technology rise across the island. This marks Japan's most ambitious industrial push in decades, aimed at revitalizing its chip-making industry and reshaping economic future.