Rapidus Aims for Competitive Edge in 2nm-Class Chip Production

https://www.anandtech.com/show/21525/rapidus-2nm-fully-automated-chip-packaging-to-cut-lead-times

As Rapidus prepares to commence volume production of chips utilizing its 2nm-class process technology in 2027, one of the primary challenges it faces is securing a customer base. With major competitors such as Intel, Samsung, and TSMC also set to launch their own 2nm-class nodes around the same time, Rapidus must identify a unique advantage to attract clients away from these established players. The company believes it has found this edge in the form of fully automated packaging, which promises shorter lead times compared to traditional, manned packaging operations.

Vision for Advanced Packaging

In a recent interview with Nikkei, Rapidus’ president, Atsuyoshi Koike, elaborated on the company’s strategy to leverage advanced packaging as a competitive differentiator for its new fabrication facility. The facility, currently under construction and expected to begin equipment installation in December, will not only produce chips but also provide advanced packaging services—all within the same site, marking an industry first. Ultimately, Rapidus aims to set itself apart by automating back-end fabrication processes, specifically chip packaging, to achieve significantly faster turnaround times.

Focus on Back-End Production

Rapidus is particularly targeting back-end production, as this area still relies heavily on human labor compared to front-end processes like lithography. To date, no other advanced packaging facility has fully automated this process, which, while offering some flexibility, tends to slow down throughput. By implementing automation in chip production, Rapidus aims to enhance packaging efficiency and speed, a critical factor as chip assembly tasks grow increasingly complex. Additionally, the company is collaborating with various Japanese suppliers to source materials necessary for back-end production.

Strategic Shift in Technology Development

Koike noted a significant shift in the approach of Japanese chipmakers regarding technology development. “In the past, Japanese chipmakers tried to keep their technology development exclusively in-house, which pushed up development costs and made them less competitive,” he stated. He emphasized that Rapidus plans to standardize certain technologies to reduce costs while managing essential technology internally.

Financial Challenges Ahead

From a financial perspective, Rapidus faces substantial hurdles, requiring a total of ¥5 trillion (approximately $35 billion) by the time mass production begins in 2027. The company estimates that ¥2 trillion will be necessary by 2025 to support prototype production. Although the Japanese government has already provided ¥920 billion in aid, Rapidus still needs to secure significant funding from private investors.

Efforts to Attract Private Financing

Given its limited track record and experience in chip production, along with uncertain prospects for success, Rapidus is encountering difficulties in attracting private financing. The company is currently in discussions with the government to facilitate capital raising efforts, which may include potential loan guarantees. Rapidus remains optimistic that forthcoming legislation will aid in this endeavor.

As the semiconductor industry continues to evolve, Rapidus’ ability to navigate these challenges will be crucial in establishing itself as a competitive player in the market.

The Hokkaido facility