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

As Rapidus gears up to begin the mass manufacturing of chips using its cutting-edge 2nm-class process in 2027, one of its biggest hurdles will be pulling in clients. By that year, industry giants like Intel, Samsung, and TSMC will also be rolling out their own 2nm-class technologies. So, what sets Rapidus apart? The company believes it has identified its competitive advantage: fully automated packaging, promising significantly reduced chip lead times compared to traditional, human-operated packaging processes.

In an insightful discussion with Nikkei, Atsuyoshi Koike, Rapidus’ president, shared the company’s strategy to leverage advanced packaging as their unique selling point for the forthcoming facility in Hokkaido. Currently under construction, the plant is gearing up to initiate equipment setup this December. It is poised to be an industry pioneer by not just producing chips but also providing sophisticated packaging services all under one roof. This integration is expected to enhance efficiency and speed. At its core, Rapidus plans to set itself apart by automating the back-end processes of chip packaging, drastically cutting down turnaround times.

The focus on back-end production is particularly strategic because, unlike front-end tasks like lithography, this area still relies heavily on human effort. No advanced packaging fab has completely automated this stage yet, largely due to its complexity. While human involvement offers flexibility, it slows down the process. Through automation, Rapidus aims to boost the efficiency and pace of chip packaging significantly, an essential move as chip assembly grows ever more complex. The company is also teaming up with various Japanese suppliers to acquire essential materials for back-end production.

“In the past, Japanese chipmakers held onto their technology development too tightly, which drove up development costs and hurt their competitiveness,” Koike explained to Nikkei. “Rapidus intends to open up standardized technology, reducing costs, while keeping crucial tech development in-house.”

On the financial front, Rapidus is staring down a hefty challenge. By the time mass production begins in 2027, the company estimates a need for a staggering ¥5 trillion ($35 billion). For prototype production alone, they project ¥2 trillion is necessary by 2025. While the Japanese government has stepped in with ¥920 billion in aid, a substantial chunk of funding still has to come from private investors.

However, without a solid track record in chip production and with its future success uncertain, Rapidus is struggling to entice private financing. The company is in negotiations with the government to ease the path to raising capital, potentially exploring loan guarantees, and remains optimistic that upcoming legislative changes will support their capital-raising efforts.