A forecast has emerged that the Japanese semiconductor corporation Rapidus may encounter disruptions in its mass production and export plans due to the semiconductor tariff bomb from the United States.
Nihon Keizai Shimbun (Nikkei) reported on the 24th that U.S. President Donald Trump warned he would impose a tariff of more than 25% on semiconductors, impacting Rapidus's plan to sell semiconductors to U.S. corporations and government agencies.
Founded in October 2022 with support of 70 billion yen (about 6.68 billion won) from the Japanese government, Rapidus is a company established with contributions of a total of 7.3 billion yen (about 700 million won) from eight Japanese corporations, including Sony, Toyota, Kioxia, SoftBank, Denso, and NEC. Rapidus aims to skip prior nodes and directly mass-produce chips below 2 NANO (1 NANO is one billionth of a meter) by early 2027.
If the Trump administration imposes a semiconductor tariff, the Japanese government is expected to emphasize that Rapidus manufactures semiconductors using technology from the U.S. firm IBM and request exemption from the tariff, according to Nikkei.
Nikkei noted, "If Rapidus is not exempted from the tariff, there are concerns that its mass production plans could be affected," adding that the Japanese government may request an exemption from the tariff in cases where U.S. corporations issued orders or utilized U.S. technology.
Currently, Japan exports memory for IT devices and power semiconductors used in electric vehicles to the U.S. There is no semiconductor tariff between the two countries. However, last year, semiconductors accounted for only 3% of Japan's total exports to the U.S., leading to analyses suggesting that even if tariffs were imposed, there would not be significant immediate impacts.
The Japanese semiconductor industry is experiencing a mix of optimistic views that President Trump will not actually raise tariffs and concerns that it is impossible to predict the policies of the Trump administration, according to Nikkei.