Japan’s Material Maestros: The Hidden Giants Behind the 2nm Chip Race
- Brian D
- Nov 26, 2025
- 2 min read
While the headlines of the "Chip War" usually focus on the foundry battle between TSMC, Intel, and Samsung, a quieter but equally critical dominance is being asserted further upstream. Japanese material suppliers are aggressively increasing capital expenditure and forming strategic consortium to secure the supply chain for 2-nanometer (nm) chips, positioning Japan as the indispensable choke point for next-generation computing.
Rapidus and the 2027 Target
The catalyst for this surge is Rapidus, Japan’s state-backed foundry venture. As of November 2025, Rapidus has secured an additional ¥100 billion ($640 million) in government equity funding to stabilize its operations. With a pilot line already active in Hokkaido since April 2025, the company aims to mass-produce 2nm logic chips by 2027. This domestic demand has given Japanese material suppliers a secure roadmap, allowing them to align their R&D timelines with a concrete production goal.
Buying the Upstream: Resonac, TOK, and JSR
Japan’s strategy is not to out-build TSMC in volume, but to control the chemicals and packaging without which 2nm chips cannot exist.
Tokyo Ohka Kogyo (TOK) and JSR are ramping up production of Extreme Ultraviolet (EUV) photoresists—a chemical layer essential for printing microscopic circuit patterns. TOK alone controls a vast majority of the global market for high-end photoresists and is investing heavily to expand capacity in both Japan and South Korea by 2030.
Resonac Holdings (formerly Showa Denko) is leading the charge in "backend" processes. In September 2025, Resonac spearheaded the JOINT3 consortium, uniting over 25 companies to develop "panel-level packaging." As chips shrink to 2nm, the performance gains increasingly come from how chips are stacked and packaged, not just the transistors themselves.
Why this Matters ?
The move to 2nm is driven by the insatiable demand for AI silicon. These chips offer roughly 45% higher performance or 75% greater efficiency than current 7nm standards. However, the manufacturing tolerance at this scale is unforgiving; a single defect in the silicon wafer or a microscopic impurity in the cleaning solution can ruin an entire production run. By dominating the market for these ultra-high-purity materials—holding roughly 60% of the global silicon wafer market and over 90% of the photoresist market—Japan ensures that whether the chip is made in Arizona, Taiwan, or Hokkaido, it requires Japanese chemistry to function.
Sources:
Tech in Asia: "Japan gov't to inject $640m equity funding into Rapidus chipmaker"
(November 22, 2025)
TechPowerUp: "Japan Ramps Up Photoresist and MOR Capacity for 2 nm EUV Lithography"
(November 6, 2025)
Markets Financial Content: "Japan's Material Maestros: Fueling the 2nm Chip Revolution and AI's Future" (October 31, 2025)
Rapidus Official Site: "2nm semiconductor challenges: Exploring Rapidus' technological breakthroughs"
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