In 2027, Rapidus is gearing up to launch volume production of chips using its cutting-edge 2nm-class process technology, but they face the tough task of attracting customers in a market dominated by giants like Intel, Samsung, and TSMC. To stand out among these established players, Rapidus is banking on a game-changing approach: fully automated chip packaging, aimed at delivering shorter lead times compared to traditional, human-led packaging operations.
In a recent chat with Nikkei, Rapidus’ president, Atsuyoshi Koike, shared details about how the company plans to leverage advanced packaging techniques to their advantage. Their new facility, located in Hokkaido, is currently under construction and is set to begin installing equipment this December. Once up and running, it’ll be the first of its kind to both manufacture chips and offer sophisticated packaging services under the same roof. However, the real ace up Rapidus’ sleeve is the full automation of back-end processes, which promises to dramatically cut down on production time.
Rapidus has its sights set on revolutionizing back-end production. Unlike the lithography-driven front-end process, back-end production is still heavily labor-intensive. As it stands, no major chip packaging operation has entirely automated this part of the process, valuing flexibility over speed. But by implementing automation, Rapidus aims to boost both efficiency and speed significantly—critical factors as chip assembly processes grow increasingly complex. At the same time, Rapidus is working closely with several Japanese suppliers to ensure a steady flow of materials for their back-end production needs.
“In previous years, Japanese chip manufacturers tried to develop their technologies in isolation,” Koike explained to Nikkei. “This strategy led to higher development costs and reduced competitiveness. Rapidus aims to open up technology that should be standardized, thereby reducing costs, while still managing vital technology internally.”
On the financial side of things, Rapidus is staring down a big hurdle, needing a whopping ¥5 trillion (around $35 billion) by 2027 to kick off mass production. For the preliminary phase of prototype production, they estimate needing ¥2 trillion by 2025. Although the Japanese government has chipped in with ¥920 billion in aid, securing the rest of the funding from private investors is proving tricky.
Rapidus’ lack of a proven track record and limited success visibility makes it a less attractive option for private financiers. To tackle this, the company is negotiating with government authorities to facilitate easier capital raising. Discussions include possible loan guarantees, and they remain optimistic that upcoming legislative changes could provide the boost they need.
