When Rapidus embarks on its journey to mass produce chips using their 2nm-class process technology in 2027, one of their biggest hurdles will be securing a client base. With tech giants like Intel, Samsung, and TSMC all ready to roll out their own 2nm nodes by then, Rapidus needs a unique selling point to draw customers away from these industry behemoths. The company believes they’ve found their competitive edge: fully automated packaging, which promises quicker chip turnaround times compared to traditional, human-dependent packaging methods.
In a conversation with Nikkei, Atsuyoshi Koike, the president of Rapidus, shared the company’s strategic plan: leveraging advanced packaging to outshine competitors at their upcoming Hokkaido facility. This plant, still under construction and gearing up for equipment installation this December, plans to produce chips and offer advanced packaging services all under one roof—something no other facility in the industry currently does. The most compelling part of Rapidus’ strategy is the automation of back-end fab processes, which they believe will drastically cut down lead times.
Rapidus has zeroed in on back-end production because, unlike the front-end lithography stage, it still heavily depends on manual labor, a factor that limits speed and efficiency. As no other advanced packaging facility has reached full automation yet, Rapidus sees a golden opportunity. By automating this segment, they aim to boost efficiency and speed significantly—a vital step as chip assembly becomes increasingly intricate. Additionally, Rapidus is partnering with various Japanese suppliers to secure materials vital to back-end production.
Koike told Nikkei that in the past, Japanese chipmakers often kept technological developments internal, which drove up costs and reduced competitiveness. Rapidus plans to buck this trend by standardizing certain technologies to lower expenses, while keeping critical know-how in-house.
On the financial front, Rapidus faces formidable challenges. To gear up for mass production by 2027, the company will need a whopping ¥5 trillion ($35 billion), with ¥2 trillion necessary by 2025 just for prototype development. Although they have ¥920 billion in backing from the Japanese government, they still need to attract substantial investment from the private sector.
However, with limited experience in chip production and uncertain prospects, attracting private investors has proven tough for Rapidus. They’re currently negotiating with the government to ease raising capital, possibly through loan guarantees, and are hopeful that upcoming legislative changes will support these efforts.
