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One of the main hurdles for Rapidus as it gears up for large-scale chip production using its 2nm-class process technology in 2027 is finding customers. By then, tech giants like Intel, Samsung, and TSMC will have their own 2nm-class chips ready, so Rapidus will need a compelling advantage to draw clients away from these well-established competitors. The company believes it has discovered a unique edge: fully automated packaging, promising quicker turnaround times compared to the traditional, manpower-dependent methods.
During a conversation with Nikkei, Rapidus’ president, Atsuyoshi Koike, discussed the company’s strategy to leverage advanced packaging to stand out in the market. The Hokkaido plant, which is still being built and anticipates starting equipment installation by December, is set to both manufacture chips and provide advanced packaging services all under one roof—a first in the industry. But more importantly, Rapidus plans to set itself apart by automating its back-end processes, particularly chip packaging, to achieve much faster turnaround times.
The focus is on back-end production because, unlike front-end processes like lithography, it still significantly relies on human labor. No current advanced packaging facility has fully automated this part, which allows some flexibility but slows down throughput. By implementing automation, Rapidus aims to enhance the efficiency and speed of chip packaging, especially as assembly tasks grow increasingly complex. Additionally, Rapidus is collaborating with several Japanese suppliers to ensure a steady flow of materials for back-end production.
Koike shared with Nikkei, “Historically, Japanese chipmakers kept their technology development in-house, which inflated costs and reduced competitiveness. [Rapidus intends to] standardize technology to lower expenses while maintaining crucial tech development internally.”
Financially, Rapidus is looking at a daunting task, needing a total of ¥5 trillion (approximately $35 billion) by the time they begin mass production in 2027, with ¥2 trillion needed by 2025 just for prototype development. Although the Japanese government has contributed ¥920 billion, the company must still secure significant funds from private investors.
Given its lack of experience in chip production and the uncertain outlook for success, Rapidus is struggling to attract private investment. The company is engaging with government officials to explore options for easing the capital-raising process, possibly via loan guarantees, and is optimistic that new legislative measures will facilitate this endeavor.
