As Rapidus gears up to launch mass production of 2nm-class process technology chips by 2027, it’s clear that their main challenge will be attracting customers. With major players like Intel, Samsung, and TSMC also expected to release their own 2nm-class nodes by then, Rapidus needs a compelling advantage to draw clients away from these entrenched competitors. Their solution? Entirely automated packaging, promising quicker chip lead times compared to traditional, manpower-dependent packing operations.
In a conversation with Nikkei, Rapidus’ president, Atsuyoshi Koike, detailed how the company plans to leverage advanced packaging as a strategic advantage for its new manufacturing facility. Located in Hokkaido, this facility is under construction and set to start installing equipment this December. The plant will be a first in the industry, combining both chip production and advanced packaging services under one roof. However, where Rapidus aims to truly stand out is by automating the backend processes—specifically, chip packaging—to significantly speed up production times.
The focus is on automating the back-end processes because, unlike the front-end lithography stage, these still depend heavily on human labor. No other advanced packaging fab has completely automated this phase, which allows for some flexibility but really slows the throughput. By automating these tasks, Rapidus aims to enhance both the efficiency and speed of chip packaging, a crucial factor as assembly tasks grow increasingly complex. Additionally, Rapidus is partnering with several Japanese suppliers to secure materials needed for back-end production.
“Historically, Japanese chipmakers kept their technology development in-house, inadvertently driving up costs and losing their competitive edge,” Koike told Nikkei. “Rapidus intends to make standardized technology accessible to reduce these costs, while keeping critical technology development internal.”
On the financial side, Rapidus is facing quite a hurdle, needing a whopping ¥5 trillion (about $35 billion) by 2027 for mass production. Out of this, ¥2 trillion is needed by 2025 just to kick off prototype production. Although the Japanese government has chipped in ¥920 billion, Rapidus still needs considerable backing from private investors.
Their lack of experience and a proven track record in chip production is making it tough for Rapidus to attract private investment. The company is negotiating with the government to simplify the process of raising capital, possibly through loan guarantees, and remains optimistic that forthcoming legislation will aid their cause.
