Rapidus, a Japanese semiconductor company, has reportedly approached four major Japanese banks for a ¥1 trillion ($49.42 billion) loan to support the mass production of advanced chips. According to a report by the Kyodo News agency on August 21, the company has applied for the substantial loan from Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, and the Development Bank of Japan. This move is seen as an effort to secure funding for the company’s ambitious production plans.

Japanese media outlets speculate that Rapidus’ loan application is part of its strategy to raise capital, with shareholders like Toyota Motor Corporation also considering additional investments. The company estimates that it will require ¥2 trillion for trial production by 2025 and an additional ¥3 trillion for full-scale 2nm production by 2027. However, Rapidus has so far secured only ¥73 billion in initial funding and around ¥920 billion in government subsidies, leaving a significant funding gap of ¥4 trillion. Approval of the ¥1 trillion loan would mark the first time the nascent chipmaker has received financial backing from the banking sector.

In a show of support, Japanese Prime Minister Fumio Kishida, along with other political figures, have expressed their intention to consider providing government guarantees for Rapidus’ loan. This comes as the Japanese government has been actively promoting domestic semiconductor manufacturing to reduce reliance on foreign suppliers and strengthen the country’s tech industry.

Rapidus, established in 2022, is a key player in Japan’s efforts to revitalize its semiconductor industry. The company focuses on advanced chip manufacturing processes and packaging, with a particular emphasis on 2nm technology. The development of such technology is crucial for applications in high-performance computing, artificial intelligence, and next-generation automotive systems.

The ¥1 trillion loan, if approved, would be a significant boost to Rapidus’ efforts to catch up with global chip manufacturing giants like TSMC, Samsung, and Intel. These companies have already made substantial investments in their own 2nm and below production capabilities, leaving Rapidus in a race against time to establish a competitive foothold.

Japan’s push to bolster its domestic semiconductor industry is part of a broader trend among nations seeking to secure chip manufacturing capabilities in the face of global supply chain disruptions. The COVID-19 pandemic, coupled with geopolitical tensions, has highlighted the fragility of the global semiconductor supply chain, prompting governments to invest in local production capacity.

In addition to Rapidus, other initiatives in Japan include the establishment of a semiconductor alliance between Sony Group and TSMC, as well as the government’s pledge to invest ¥47.6 billion in a new chip fabrication plant by铠侠 (Kioxia) and Western Digital.

The outcome of Rapidus’ loan application will be closely watched by industry analysts and policymakers, as it could signal the strength of Japan’s commitment to reestablish itself as a major player in the global semiconductor landscape. With the financial backing of banks and potential government guarantees, Rapidus may be on its way to bridging the significant funding gap and accelerating its pursuit of advanced chip production.

In conclusion, Rapidus’ loan request to Japanese banks represents a critical step in the company’s journey to develop and mass-produce advanced 2nm chips. The support of the banking sector and the Japanese government will be crucial in determining the success of Rapidus’ ambitious plans, as well as Japan’s overall strategy to revitalize its semiconductor industry.

【source】https://www.ithome.com/0/791/812.htm

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