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Japan Aerospace Exploration Agency has introduced a terascale SMP cluster type parallel supercomputer system as the main compute engine of Numerical Simulator III for aerospace science and engineering purposes. The computing system, called CeNSS, has 9.3Tflop/s peak performance and 3.6TB user memory, about 1,800 scalar processors are used. It also has a mass storage consisting of 57TB disk and 620TB tape library, and a visualization system is tightly integrated to the computing system. In this paper, after reviewing the history of the Numerical Simulator project, we describe the system configuration of NS-III. Next, we mention the performance issues on the CeNSS. Finally, illustrating some examples of the recent application results performed on the JAXA NS-III, we discuss the emerging trends and the future challenges in aerospace CFD.