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

As Rapidus embarks on producing chips using its cutting-edge 2nm-class technology by 2027, it faces a pivotal task: securing a loyal customer base. With industry heavyweights like Intel, Samsung, and TSMC poised to launch their own 2nm nodes around the same time, Rapidus needs a compelling reason for clients to choose them over more established competitors. The company believes it has found its unique advantage in fully automating the packaging process, promising quicker lead times than traditional, labor-intensive methods.

During a recent conversation with Nikkei, Atsuyoshi Koike, the president of Rapidus, shared the company’s ambitious plan to use advanced packaging as a major selling point for their new facility. This plant, currently being built in Hokkaido, plans to integrate both chip production and advanced packaging services—a first in the industry. What truly sets Rapidus apart, however, is their intention to automate the backend processes, specifically chip packaging, to achieve remarkably faster turnaround times.

Koike believes the key lies in targeting the backend production phase. While frontend processes like lithography have become quite tech-driven, backend operations still depend heavily on human labor. This human involvement, while offering some flexibility, tends to slow things down. By automating these tasks, Rapidus aims to boost efficiency and speed, which becomes increasingly important as chip assembly grows more sophisticated. The company is also working closely with several Japanese suppliers to source the materials needed for this backend production.

“In the past, Japanese chipmakers often kept their tech development in-house, which ramped up costs and stifled competitiveness,” Koike explained to Nikkei. Rapidus, on the other hand, plans to “standardize technologies where possible to reduce expenses, while managing critical technologies internally.”

Financially, Rapidus has its work cut out. To meet its goals by 2027, the company estimates it needs a hefty ¥5 trillion (about $35 billion), with ¥2 trillion of that required by 2025 just to kickstart prototype production. The Japanese government has already stepped in with ¥920 billion, but Rapidus still needs more significant investment from private sectors.

Given its lack of history and proven success in chip production, convincing private financiers to back its venture has been challenging for Rapidus. The company is currently engaging with governmental bodies to explore ways to facilitate capital influx, possibly through loan guarantees, and it is optimistic that forthcoming legislation will support these fundraising efforts.