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A major hurdle Rapidus will encounter as it embarks on high-volume chip production using its 2nm-class technology in 2027 is drawing in clients. With tech giants like Intel, Samsung, and TSMC also rolling out their 2nm-class processes by then, Rapidus needs a compelling edge to sway customers from these well-established competitors. Rapidus thinks it has found a unique selling point: a fully automated packaging process, promising quicker chip lead times compared to traditional, manpower-dependent operations.
In a chat with Nikkei, Rapidus’ president, Atsuyoshi Koike, shared their strategy to leverage advanced packaging to make their new facility stand out. The site in Hokkaido, under construction and gearing up for equipment installation this December, plans to do something unprecedented—combine chip production and advanced packaging services in a single location. The centerpiece of Rapidus’ strategy is automating the back-end processes, aiming for much swifter turnaround times by minimizing human intervention in packaging activities.
Rapidus is directing its focus on back-end production since, unlike front-end tasks like lithography, it still largely depends on human labor. This reliance provides flexibility but can bottleneck the overall process. Automation here could drastically boost efficiency and speed, which is becoming increasingly crucial as chip assembly tasks grow more intricate. To support this, Rapidus is collaborating closely with various Japanese suppliers to ensure they have the necessary materials for back-end production.
Reflecting on past practices, Koike explained, “Previously, Japanese chipmakers would develop technology internally, which ended up inflating costs and reducing their competitiveness,” he shared with Nikkei. “We aim to standardize some technologies to lower costs, while maintaining control over critical developments.”
From a financial perspective, Rapidus has a steep uphill climb. They’ll need a whopping ¥5 trillion ($35 billion) when they kick off mass production in 2027. By 2025, they estimate ¥2 trillion will be necessary for prototype developments. Presently, the Japanese government has chipped in with ¥920 billion in support, but Rapidus still faces the challenge of securing substantial private investment.
Given its observational inexperience and the uncertainty of its success, Rapidus is struggling to attract private investors. They are seeking governmental assistance to ease this financial burden, possibly through loan guarantees, and are optimistic that future legislation could pave the way for more financial backing.
