Rapidus Aims to Reduce Chip Lead Times with Fully Automated 2nm Fab Packaging

When Rapidus embarks on large-scale chip production using its 2nm-class technology in 2027, it will face the formidable task of securing a customer base. With industry giants like Intel, Samsung, and TSMC also making strides in their 2nm-class nodes, Rapidus will need a unique selling point to draw clients away from these well-established competitors. The company believes it has discovered its competitive edge: fully automated packaging that allows for quicker chip delivery compared to traditional, labor-intensive methods.

In a candid chat with Nikkei, Rapidus’ president, Atsuyoshi Koike, detailed the company’s strategy to leverage advanced packaging as a key differentiator for their upcoming fabrication plant. This new facility, located in Hokkaido, is under construction with plans to begin equipment setup this December. Notably, it’ll be the first in the industry to produce chips and offer advanced packaging solutions under one roof. The heart of Rapidus’ strategy lies in automating the back-end processes, allowing them to significantly reduce the time required for chip packaging.

Rapidus focuses on back-end production processes because, while the front-end (lithography) production has evolved with technological advancements, the back-end still relies heavily on manual labor. No other fab has fully automated this phase yet, and despite the flexibility manual processes offer, they also slow down production. By automating this part, Rapidus aims to boost efficiency and speed, vital components as chip assembly tasks grow increasingly complex. The company is also collaborating with several Japanese suppliers to ensure a robust material supply chain for back-end production.

“In the old days, Japanese chipmakers insisted on keeping all tech developments internal, which drove up costs and reduced competitiveness,” Koike mentioned in his discussion with Nikkei. “[Rapidus aims to] standardize technologies where possible to cut costs while retaining key tech development in-house.”

On the financial front, Rapidus is up against a significant hurdle, needing a whopping ¥5 trillion (about $35 billion) by 2027 for mass production. They project a requirement of ¥2 trillion by 2025 just to initiate prototype production. While they have received ¥920 billion in aid from the Japanese government, the company still has a long way to go in securing additional funds from private investors.

With no track record or experience in chip production and uncertainty clouding its success, Rapidus finds private financing a tough nut to crack. Discussions with the government are underway to ease capital-raising efforts, including considering loan guarantees. The company remains hopeful that new legislative measures will support these endeavors.