When Rapidus kicks off its 2nm-class process technology chip production in 2027, it will face a significant hurdle: securing a solid customer base. With industry giants like Intel, Samsung, and TSMC all expected to launch their own 2nm nodes by then, Rapidus needs a unique selling point to lure clients away from these well-entrenched competitors. The company believes it has found that edge in fully automated packaging, promising swifter chip lead times compared to traditional, labor-intensive processes.
In a recent conversation with Nikkei, Rapidus’ president, Atsuyoshi Koike, shared insights into how advanced packaging will be the key differentiator for their new facility. This Hokkaido plant, now under construction and gearing up for equipment installation this December, aims to break new ground by being the first in the industry to integrate both chip production and advanced packaging services under one roof. Rapidus’ ambitious strategy hinges on automating the back-end processes to dramatically enhance turnaround speed.
Focusing on back-end production is a strategic choice for Rapidus. Unlike the front-end lithography phase, back-end production still largely depends on human workers. This reliance allows for flexibility but tends to bottleneck the production process. By automating these tasks, Rapidus hopes to boost packaging efficiency and speed — a crucial capability as assembly tasks grow increasingly intricate. To support this, Rapidus is teaming up with several Japanese suppliers for their material needs.
Koike highlighted a shift in approach from past Japanese chipmakers who tended to keep technology development locked within their walls, incurring high costs and diminishing competitiveness. “Rapidus plans to standardize the technology that should be accessible, reducing expenses, while keeping critical tech in-house,” he conveyed to Nikkei.
On the financial front, Rapidus faces an uphill climb, requiring a hefty ¥5 trillion (around $35 billion) to hit mass production by 2027, with ¥2 trillion needed by 2025 for prototype making. While the Japanese government has stepped in with ¥920 billion in support, Rapidus still requires significant investment from private sectors.
Attracting private funding, however, is proving challenging due to the company’s inexperience in chip production and the uncertainties surrounding its success. Rapidus is actively engaging with government bodies to ease the path to raising capital, including exploring loan guarantees, with optimism that forthcoming legislative changes will provide support in their financial quest.
