Japanese banks are said to be planning to invest in local semiconductor maker Rapidus as the company gears up to produce next-generation chips.
Sources say three of the country’s biggest banks and state-owned Development Bank of Japan may invest as much as 25 billion yen, or 172 million dollars in the firm.
Rapidus is building a plant in Hokkaido, northern Japan. The facility will start manufacturing chips for self-driving cars and AI servers from 2027.
Development Bank of Japan is in talks to invest as much as 70 million dollars in Rapidus. Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho are the three banks also lining up funding.
Rapidus is reportedly seeking to raise as much as 690 million dollars for its expansion plans.
The company was set up in 2022 and funded by corporate heavyweights, such as Toyota Motor, telecom giant NTT, and Sony Group.
Japan’s government has earmarked more than 6 billion dollars to support Rapidus. This is part of broader efforts to rebuild the nation’s semiconductor industry.
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