The Japanese government will send officials to the US in March 2025 to discuss various tariff issues, including potential exemptions for the 2nm chips produced by Rapidus. They believe that due to their technical collaboration with IBM, these products should qualify for exemption from Trump's tariff regime.
According to Nikkei, if the US imposes tariffs over 25% on all imported semiconductor products, the impact may not be substantial for Japan, as its semiconductor exports to the US are relatively low. Based on trade statistics from Japan's Ministry of Finance, in 2024, Japan's semiconductor exports primarily targeted Asia, with only 3% going to the US, amounting to approximately JPY138.7 billion (US$924 million). The overall effect on Japan's semiconductor industry would therefore be minimal.
Currently, Japan exports memory used in IT equipment and power semiconductors required for electric vehicles (EVs) to the US. Tariffs on semiconductors between Japan and the US had previously been eliminated. The introduction of new tariffs exceeding 25% could adversely affect Japan's memory manufacturers and power semiconductor firms.
Japan's memory manufacturing sector includes Kioxia, known for NAND flash and SSD production. Power semiconductor companies consist of Mitsubishi Electric, Fuji Electric, Toshiba, and Rohm.
A particular concern
Rapidus, which aims to mass-produce 2nm chips by 2027, may also face challenges due to Trump's tariffs, as its production site is located in Hokkaido, Japan, while potential customers include US IT companies and defense agencies. The critical question remains the scope of Trump's semiconductor tariff policy.
If Japanese companies like Rapidus fall under this category, the Japanese government plans to lobby the US to exclude certain products, specifically Japanese semiconductor products utilizing American technology or those ordered by US companies, from the tariff applicability.
Rapidus is currently collaborating closely with IBM to develop a mass production system for 2nm chips. Japanese officials hope that this relationship will help exempt Rapidus from the impending semiconductor tariffs.
Japan's Minister of Economy, Trade and Industry, Yoji Muto, is scheduled to visit the US in March 2025 to discuss this matter with US officials.
Article edited by Jerry Chen
