Japan's Rapidus starts test production in AI chipmaking gamble

Japan's state-backed chip venture Rapidus began test production of next-generation chips on Tuesday, an early but key step in the country's efforts to make its own artificial intelligence components. The 2-year-old company is gearing up to mass produce semiconductors using 2-nanometer processes in 2027, which on paper would match Taiwan Semiconductor Manufacturing Co. in terms of chipmaking prowess. Japan has to date earmarked 1.72 trillion ( 11.5 billion) to support the startup, part of a yearslong push to regain some of the tech leadership it's ceded to the U.S., Taiwan and South Korea. "It was extraordinarily difficult to develop 2 nm technology and the knowhow for mass production," and more experimentation lies ahead, Chief Executive Officer Atsuyoshi Koike, who is 72, said at a news conference. "We will take things step by step to lower error rates and secure customer trust."