Getting ready to jump into the big league of chip production around 2027 with 2nm-class process technology, Rapidus knows it has a tough road ahead, particularly when it comes to attracting customers. It’s not just Intel, Samsung, and TSMC they’re up against, all of whom are planning to roll out their own similar nodes. The challenge is to find what makes Rapidus stand apart. From their perspective, the answer seems to lie in cutting-edge automation. They’re banking on fully automating the packaging process, promising customers a significant reduction in lead times compared to the traditional, more labor-intensive packaging methods.
In a chat with Nikkei, the president of Rapidus, Atsuyoshi Koike, shared how they plan to use advanced packaging as their secret weapon. The new facility in Hokkaido, which they’re busy building, aims to house both chip production and advanced packaging services under one roof, which is unheard of in the industry so far. Their big push, however, is towards automating what’s known as the back-end processes, essentially the packaging stage post-production, which traditionally leans heavily on human labor.
Focusing on this back-end production, Rapidus sees a chance to really set themselves apart. As packaging becomes more complex, the automation they aim to implement could vastly enhance both efficiency and speed, crucial in today’s fast-paced tech environment. They’re also collaborating with several Japanese suppliers to source necessary materials, ensuring that they’re fully equipped for the task.
Reflecting on past strategies, Koike recognized the pitfalls where Japanese chipmakers often kept tech development all in the family. This approach previously drove up costs and hurt competitiveness. Rapidus is planning to change this narrative by advocating for standardization where possible to cut costs, while keeping critical technologies on home turf.
On the financial front, Rapidus has its work cut out. They’ve projected a need for a staggering ¥5 trillion, roughly $35 billion, by the time they ramp up to full-scale production in 2027, with ¥2 trillion needed by 2025 just for prototypes. While there’s a supportive cushion of ¥920 billion from the Japanese government, Rapidus still needs to pull in a significant amount from private investors.
Attracting private investment, however, is proving to be tricky. Their relative inexperience and the uncertainty surrounding their success make investors wary. Rapidus is actively engaging with government officials to potentially pave the way for easier fund acquisition, which could include loan guarantees. The company remains hopeful that legislative changes on the horizon will clear the path to the needed financial support.
