Rapidus Aims to Introduce Fully Automated 2nm Fab Packaging to Reduce Chip Production Times

One of the primary hurdles Rapidus must overcome as it prepares to launch mass production of 2nm-class chip technology in 2027 is securing a customer base. With industry giants like Intel, Samsung, and TSMC also set to roll out their own 2nm-class nodes by then, Rapidus needs a compelling reason for customers to choose them over these well-established names. That’s where Rapidus believes it has an ace up its sleeve: a fully automated packaging process promising quicker lead times than traditional, labor-intensive methods.

In a conversation with Nikkei, Rapidus’ president, Atsuyoshi Koike, shared the company’s strategic vision. Their plan is to leverage advanced packaging as a key differentiator for the new manufacturing facility. Located in Hokkaido, this site is currently under construction and aims to start installing equipment by December. This facility will uniquely combine chip production and advanced packaging services under one roof, setting a new industry standard. What really sets Rapidus apart is its mission to automate the back-end processes, particularly chip packaging, to deliver much faster product turnaround.

Rapidus is focusing specifically on back-end production because, unlike the front-end (lithography) phase, it still relies heavily on manual labor. No other advanced packaging plant has fully embraced automation yet, allowing some flexibility but ultimately limiting speed. Automation for these tasks would enable Rapidus to boost the efficiency and pace of chip packaging, a critical advantage as chip assembly becomes more complicated. To support this initiative, Rapidus is partnering with a variety of Japanese suppliers to source materials essential for back-end production.

Reflecting on past strategies, Koike mentioned, “Previously, Japanese chipmakers tended to keep technological development in-house, which drove up costs and reduced competitiveness.” Rapidus aims to standardize some technologies to cut costs, while still managing the essential technology internally, to gain a competitive edge.

On the financial side, Rapidus faces an immense obstacle, with a requirement of ¥5 trillion ($35 billion) by the time mass production starts in 2027. They anticipate needing ¥2 trillion by 2025 just for the prototype phase, and although the Japanese government has chipped in with ¥920 billion in assistance, the company still has a long way to go in securing additional private investment.

Given its nascent track record and the uncertain visibility of its success in chip production, Rapidus is struggling to entice private financiers. Therefore, they are in talks with the government to smooth the capital-raising process, potentially through loan guarantees, and are optimistic that forthcoming legislation will support these efforts.