When Rapidus steps into the spotlight with its 2nm-class chip production in 2027, it’ll be facing a significant hurdle: winning over customers. By then, the stage will be crowded, with heavyweight contenders like Intel, Samsung, and TSMC rolling out their 2nm nodes. So, what will set Rapidus apart? The company is banking on a game-changing advantage with fully automated packaging, slashing chip lead times more effectively than traditional, labor-intensive methods.
In a revealing chat with Nikkei, Atsuyoshi Koike, the president of Rapidus, shared insights into the company’s strategic edge—leveraging advanced packaging at their new facility in Hokkaido. This site, currently being built with plans to install equipment by December, is designed to handle both chip production and innovative packaging methods—an industry trailblazer in its own right. By automating back-end processes, Rapidus aims to revolutionize chip packaging speeds, offering a quicker turnaround that’s becoming increasingly critical as chip assemblies grow more intricate.
Targeting the back-end production where human labor still dominates, Rapidus envisions a world where full automation boosts efficiency and throughput. Unlike any other advanced packaging fab, which might value flexibility over speed, Rapidus is diving headfirst into automation to transform chip assembly. The company is also working closely with several Japanese suppliers to secure essential materials for this cutting-edge back-end production.
Reflecting on past lessons, Koike remarked, “Japanese chipmakers historically kept their tech development in-house, which only drove up costs and eroded competitiveness.” Rapidus intends to flip this script by standardizing necessary technologies externally to cut expenses, while keeping critical innovations within the company’s walls.
The financial scene presents another daunting barrier. Rapidus requires a whopping ¥5 trillion (that’s about $35 billion) by the time it hits mass production in 2027, with ¥2 trillion needed by 2025 just for prototypes. The Japanese government has chipped in with ¥920 billion, but that still leaves Rapidus needing a hefty sum from private investors.
Attracting private investment, however, is no walk in the park. With no track record in chip production and uncertain prospects for success, Rapidus is finding it tough to secure funding. They’re engaging with the government to simplify the capital-raising process, possibly through loan guarantees, and they’re hopeful that new legislation might turn the tide in their favor.
