One of the major hurdles Rapidus will have to overcome when they begin large-scale production of chips using their 2nm-class process technology in 2027 is gaining clients. With industry giants like Intel, Samsung, and TSMC all set to offer their own versions of 2nm-class nodes by the same period, Rapidus will need a distinct advantage to draw customers away from these well-established competitors. The company believes it has identified its edge: a fully automated packaging process promising shorter lead times compared to traditional operations that rely heavily on manpower.
In a conversation with Nikkei, Rapidus’ president, Atsuyoshi Koike, shared his vision of leveraging advanced packaging to carve out a competitive edge with the new facility. Located in Hokkaido and currently under construction, this fab anticipates starting equipment installation by December. Uniquely, it’s set to become the first in the industry to both produce chips and offer advanced packaging services under one roof. However, Rapidus’ primary strategy to stand apart hinges on automating the back-end processes, namely chip packaging, to drastically cut down turnaround times.
Rapidus is honing in on back-end production specifically. While front-end processes like lithography have seen significant automation, back-end production still leans heavily on manual labor. No advanced packaging fab has yet fully automated these aspects, which although allows flexibility, reduces the pace of production. By implementing automation in this stage, Rapidus aims to boost efficiency and speed — a critical factor as chip assembly becomes increasingly intricate. To achieve this, Rapidus is actively partnering with several Japanese suppliers to procure materials for back-end production.
“In the past, Japanese chipmakers tended to keep their tech advancements strictly in-house, which escalated development costs and hindered competitiveness,” Koike explained to Nikkei. “[Our approach at Rapidus will] open technology that should be standardized to lower costs while preserving essential tech in-house.”
On the financial front, Rapidus has a mountainous challenge, with a need for ¥5 trillion ($35 billion) by the time they kick off mass production in 2027. For prototype production alone, they estimate requiring ¥2 trillion by 2025. While the Japanese government has already committed ¥920 billion in support, Rapidus still needs to attract significant investments from private sectors.
Given Rapidus’ lack of experience and track record in chip manufacturing, coupled with the uncertainties surrounding their success, attracting private funding has been a tough battle. The company is currently in talks with government officials to ease the process of capital acquisition, exploring options like loan guarantees, and remains optimistic that new legislation will facilitate these efforts.
