One of the big hurdles Rapidus is gearing up to tackle as it heads towards launching its 2nm-class chip production in 2027 is the hunt for customers. By then, giants like Intel, Samsung, and TSMC will have their 2nm technology ready to roll, so Rapidus needs a compelling advantage to entice clients away from these well-established contenders. To address this, the company believes it has found a game-changer: a fully automated packaging process that promises to significantly cut down chip lead times compared to traditional, manually-run operations.
During a chat with Nikkei, Atsuyoshi Koike, Rapidus’ president, detailed the company’s strategy to leverage advanced packaging as a competitive weapon for their new facility. The plant in Hokkaido is currently being built, and equipment installation is on the calendar for this December. Uniquely, this facility is being designed to not only produce chips but also provide advanced packaging services under one roof—a first in the industry. Rapidus aims to stand out by automating these back-end operations (the chip packaging part) to drastically speed up turnaround times.
The focus for Rapidus is the back-end production. Unlike the front-end process (like lithography), back-end production is still quite labor-intensive. While such facilities have yet to fully automate packaging, which allows for adaptability but slows down production, Rapidus sees automation as a way to boost both the efficiency and speed of chip packaging—a crucial need given the increasing complexity of chip assembly tasks. The company is also teaming up with multiple Japanese suppliers to procure materials necessary for back-end production.
Koike shared with Nikkei, “Historically, Japanese chipmakers kept their tech development overly private, making it costly and less competitive. What Rapidus plans is to open up technology that should be standardized to trim costs while keeping critical technology development in-house.”
Financially, Rapidus faces a tough journey, needing a whopping ¥5 trillion ($35 billion) by the time it hits mass production in 2027. For prototype production alone, the company estimates ¥2 trillion will be necessary by 2025. Although the Japanese government has stepped up with ¥920 billion in support, Rapidus still requires hefty investment from private investors.
Due to its nascent experience in chip production and the unclear path to success, attracting private financing is proving challenging for Rapidus. The firm is negotiating with the government to smooth over the capital-raising process, discussing possible loan guarantees and hoping that forthcoming legislation will make things easier.
