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As Rapidus gears up to enter the competitive world of chip manufacturing with its ambitious plans to start producing 2nm-class chips in 2027, one of the main hurdles lies ahead: securing a solid customer base. By the time Rapidus launches, giants like Intel, Samsung, and TSMC will also have their own 2nm processes in place. To draw potential clients, Rapidus is banking on a unique advantage—fully automated packaging, promising faster chip lead times compared to traditional, manual operations.
In a chat with Nikkei, Atsuyoshi Koike, the president of Rapidus, shed some light on their strategic plan to leverage advanced packaging for competitive advantage. The new facility in Hokkaido, currently under construction, is set to pioneer by not only producing chips but also offering cutting-edge packaging services—all under the same roof. This setup is a first in the industry. The big differentiator for Rapidus will be automating back-end operations, specifically chip packaging, to slash turnaround times significantly.
Targeting back-end production is a deliberate move for Rapidus, as this area still heavily depends on manual labor compared to the front-end lithography processes. Despite the increased flexibility with human involvement, it tends to slow down production. By introducing automation into this segment, Rapidus aims to boost efficiency and speed, crucial as chip assembly tasks grow more intricate. Moreover, the company is teaming up with multiple Japanese suppliers to secure materials essential for back-end production.
“In the past, Japanese chipmakers tried to keep their technology development exclusively in-house, which pushed up development costs and made them less competitive,” revealed Koike to Nikkei. He further stated, “Rapidus plans to open up technology that should be standardized, bringing down costs, while handling important technology in-house.”
On the financial side, Rapidus has a steep hill to climb. They’re looking at a funding requirement of ¥5 trillion (around $35 billion) by the time mass production hits in 2027. Just to get prototype production off the ground by 2025, they need ¥2 trillion. Despite a generous ¥920 billion contribution from the Japanese government, securing the remaining funds from private investors poses a challenge.
Given Rapidus’s current lack of an established track record in chip production, coupled with uncertain prospects, attracting private investment has been tricky. Nevertheless, they’re in talks with governmental bodies to ease the path to raising capital, considering options like loan guarantees, and are optimistic that upcoming legislation will provide a much-needed boost.
