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When Rapidus embarks on its ambitious journey to produce chips using cutting-edge 2nm-class process technology in 2027, one of the primary hurdles it will encounter is securing a customer base. Facing formidable competition from industry giants like Intel, Samsung, and TSMC, who also plan to launch their own 2nm-class nodes by then, Rapidus needs a unique selling point to lure customers. The company is banking on fully automated packaging to provide an enticing advantage by promising quicker chip lead times compared to traditional, labor-intensive packaging processes.
In a conversation with Nikkei, Rapidus’ president, Atsuyoshi Koike, shared insights into how the company intends to leverage advanced packaging to outshine its competitors. Situated in Hokkaido, the facility, which is taking shape with plans to commence equipment installation this December, is designed to both fabricate chips and offer advanced packaging services under the same roof—an industry first. However, Rapidus’ biggest differentiator is its strategic plan to streamline back-end fab processes by automating chip packaging, which dramatically shortens turnaround times.
Rapidus is focusing primarily on automating back-end production. This area, unlike the front-end (lithography) process, still depends heavily on manual labor across the industry. No other facility dedicated to advanced packaging has fully embraced automation yet, which, while allowing flexibility, also slows down production. By deploying automation to tackle the intricacies of chip production, Rapidus aims to ramp up packaging efficiency. This evolution is particularly pivotal as chip assembly grows more intricate. In pursuit of this goal, Rapidus is teaming up with a host of Japanese suppliers to ensure a smooth materials supply line for back-end operations.
Koike remarked to Nikkei, “Historically, Japanese chipmakers have tried to develop their technology in isolation, a move that escalated expenses and diminished their competitive edge. Our approach at Rapidus is to standardize technologies wherever possible to cut costs while maintaining control over critical innovations internally.”
On the financial front, Rapidus is staring down a daunting challenge. The company anticipates requiring ¥5 trillion ($35 billion) by 2027 to kick off mass production, with a substantial portion, ¥2 trillion, earmarked for prototype development by 2025. Although the Japanese government has committed ¥920 billion in support, the firm still faces a substantial gap that needs to be filled by private investors.
Given its unproven track record and limited visibility regarding future success in chip production, Rapidus is encountering difficulties in attracting private capital. To remedy this, the company is negotiating with the government to facilitate easier access to funding, which might include loan guarantees. They remain hopeful that forthcoming legislation will smooth the way for these financial endeavors.
