When Rapidus embarks on producing chips using 2nm-class process technology in 2027, one of its biggest hurdles will be securing a customer base. By then, giants like Intel, Samsung, and TSMC are also expected to have their own 2nm-class nodes, providing standard-setting competition. Rapidus will need a compelling reason for customers to choose them, and they believe they’ve found it: fully automated packaging that promises faster chip lead times than traditional methods relying on human labor.
In a chat with Nikkei, Rapidus’ president, Atsuyoshi Koike, shared the company’s strategy for using advanced packaging as a key differentiator. The new facility in Hokkaido, currently in the construction phase and set for equipment installation this December, is planned not only to churn out chips but also provide advanced packaging services—all under one roof. This integration is a first in the industry. Rapidus’ grand plan focuses on automating the back-end fab processes, crucial for churning out chips more swiftly.
Traditionally, back-end production, which includes packaging, leans heavily on human effort compared to front-end activities like lithography. While no other advanced packaging facility has fully automated this back-end process yet, Rapidus aims to lead the way. Automating this phase is anticipated to enhance both the speed and efficiency of chip packaging, an essential move as these tasks grow increasingly intricate. Additionally, their collaboration with various Japanese suppliers for sourcing materials further strengthens their position.
“Previously, Japanese chipmakers preferred to keep their tech developments in-house, which inflated development costs and hampered competitiveness,” Koike explained to Nikkei. “Rapidus intends to open up certain technologies that should become standardized, thereby reducing costs, while still handling critical tech internally.”
On the financial side, Rapidus is looking at a daunting goal. They need approximately ¥5 trillion (around $35 billion) by the time production ramps up in 2027, with an immediate need of ¥2 trillion for prototypes by 2025. The Japanese government has already stepped in with ¥920 billion in support, yet the company still needs considerable backing from private investors.
Given its lack of history in chip production and uncertainty around its success, Rapidus is facing challenges in wooing private financiers. The company is in talks with the government to find ways to simplify capital raising, possibly through loan guarantees, and is optimistic that upcoming legislative changes will bolster its funding efforts.
