A major hurdle that Rapidus will encounter when it begins large-scale production of 2nm-class process technology chips in 2027 is securing customers. With big players like Intel, Samsung, and TSMC already set to roll out their own 2nm-class nodes by that time, Rapidus needs a distinct advantage to lure clients away from these seasoned competitors. The company’s secret weapon? Fully automated packaging, which promises quicker chip lead times compared to traditional, labor-intensive packaging operations.
In a conversation with Nikkei, Rapidus’ president, Atsuyoshi Koike, shared the company’s strategy to leverage advanced packaging as a key selling point for their upcoming fab. Located in Hokkaido, this facility is currently being built and plans to start installing equipment this December. Impressively, it’s aimed at not only producing chips but also offering advanced packaging services under one roof—something unprecedented in the industry. Rapidus’ main strategy to stand out is automating the back-end fab processes, specifically chip packaging, to dramatically cut down turnaround times.
The focus on enhancing back-end production is particularly significant for Rapidus. Unlike front-end production, which involves lithography and is already quite advanced, back-end production is still heavily reliant on manual labor. While no advanced packaging facilities have yet achieved full automation—benefiting from versatility but suffering from slower throughput—Rapidus aims to change that. By automating chip packaging, they plan to boost efficiency and speed, a crucial factor as chip assembly grows more intricate. To achieve this, Rapidus is working with various Japanese suppliers to source necessary materials for back-end production.
“In the past, Japanese chipmakers tried to keep their technology development exclusively in-house, which drove up costs and reduced competitiveness,” Koike explained to Nikkei. “Rapidus intends to open up technology that should be standardized, decreasing costs, while managing essential technology internally.”
On the financial front, Rapidus is up against a significant task, needing a staggering ¥5 trillion (about $35 billion) by the time mass production commences in 2027. For prototype production, they’re estimating a requirement of ¥2 trillion by 2025. While they’ve secured ¥920 billion in support from the Japanese government, there’s still a pressing need to attract major funding from private investors.
However, due to its limited history and experience in chip production, coupled with the uncertain outlook for success, Rapidus is struggling to draw in private investment. The company is actively negotiating with the government to facilitate capital raising, potentially including loan guarantees, and hopes that fresh legislation will aid greatly in this endeavor.
