Japanese chipmaker Rapidus looks to Broadcom to emulate Taiwanese semiconductor’s market dominance – Broadcom (NASDAQ:AVGO)

Broadcom Co., Ltd. AVGO Samples of 2nm chips from Japan’s Rapidus will soon be available starting in June.

The development marks an effort by Japanese chipmakers to emulate Taiwan Semiconductor Manufacturing Corporation, a major contract chipmaker. TSM This strategy has helped the company reach a market capitalization of several trillion dollars, Nikkei Asia reports.

According to previous reports, International Business Machines Corp. IBM and Rapidus are jointly developing IBM’s 2nm node technology for implementation at the Rapidus factory in Japan.

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Rapidus is backed by Toyota Motor Corporation TMSony Group Corporation sonyand 6 other Japanese companies

After the 2020 pandemic disrupted global supply chains and triggered a severe semiconductor chip crisis, countries such as the United States, Europe, and Japan have recently focused on consolidating their semiconductor infrastructure to reduce dependence on China. There is.

Over the past three years, Japan has poured about 4 trillion yen ($26 billion) into strengthening its semiconductor sector. Up to 920 billion yen of the grant went to Rapidus to help produce advanced chips.

Taiwan Semiconductor has already built a 2nm wafer factory in Baoshan City, Hsinchu Prefecture, and plans to begin mass production in 2025.

Taiwan Semiconductor Chairman CC Wei has highlighted the company’s interest in the 2nm process, which prompted the company to increase production capacity.

Taiwan Semiconductor’s additional facility in Kaohsiung is likely to start producing 2nm in 2026. The company is building two advanced factories in Arizona and plans to commercialize chips using 3nm and 2nm processes in 2028.

Meanwhile, Broadcom has emerged as the most valuable chip company after Nvidia Corp. NVDAaccording to JPMorgan’s Harlan Soule, AI is expected to represent a $150 billion opportunity.

This opportunity is supported by 2nm and 3nm technologies and a strong partnership with Alphabet Inc. google google Google and Meta Platforms Inc. meta. Broadcom is collaborating with OpenAI and its fifth major customer to bag a multi-generation AI ASIC program, all ready for 2026 ramp-up.

Wedbush’s Dan Ives expects tech stocks to rise 25% in 2025 on the back of President-elect Donald Trump’s policies and Big Tech spending.

Investors can gain exposure to semiconductor stocks through the VanEck Semiconductor ETF SMH and iShares Semiconductor ETF socks.

Price Action: AVGO stock closed at $228.64 on Wednesday.

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