Rapidus Corp., the Japanese semiconductor venture backed by government and industry, has sought loans amounting to approximately JPY100bn (about $685mn) as part of its ambitious plan to revolutionise chip production. The company aims to secure a total of JPY5 trillion to establish itself as a leader in next-generation semiconductor manufacturing by 2027, as reported by Kyodo News.

The company, established in 2022 with a focus on enhancing Japan's economic security through advanced semiconductor technologies, has approached Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corp., and the Development Bank of Japan for the required funds. This loan request is critical for Rapidus, which still needs about JPY4 trillion to reach its funding goal.

In addition to these loans, Rapidus is expected to seek further investments from its shareholders, including major players like Toyota Motor Corp. This follows a recent commitment from the Japanese government, which pledged JPY920bn in subsidies to support the venture.

Rapidus has already garnered JPY7.3bn from eight significant Japanese firms, such as Toyota, SoftBank Corp., and Nippon Telegraph and Telephone Corp. These investments are part of a broader effort to fortify Japan's semiconductor industry, ensuring a strong domestic supply chain and reducing reliance on foreign technologies.

The funds are intended to support the construction of a new plant in Chitose, Hokkaido, where Rapidus plans to commence the mass production of cutting-edge 2-nanometer semiconductors by 2027. This project is backed by technical support from IBM Corp., aiming to position Rapidus at the forefront of semiconductor innovation.

As Japan intensifies its push to dominate the global semiconductor market, Rapidus’s efforts represent a significant step in the country's strategy to bolster its technological prowess and economic security.