Japan’s largest banks to lend $13.7b to chipmaker Rapidus

Japan’s three largest banks, MUFG Bank, Sumitomo Mitsui Banking, and Mizuho Bank, plan to lend up to ¥2 trillion (US$13.7 billion) to Rapidus starting from fiscal 2027.

This would be Rapidus’ first major private-sector loan, with details still under discussion.

The government-affiliated Information-Technology Promotion Agency is expected to guarantee the loans.

Rapidus has received government commitments totaling about ¥1.7 trillion (US$10.9 billion), with another ¥1 trillion (US$6.4 billion) planned for fiscal 2026 and 2027.

MUFG Bank and its peers, along with the Development Bank of Japan, are considering a new investment of up to ¥25 billion (US$160.5 million).

Major Japanese corporates, including Toyota, SoftBank, Sony, NEC, NTT, Denso, and Kioxia, have invested a combined ¥7.3 billion (US$46.6 million) in Rapidus. Other firms, such as Fujitsu, are reportedly considering new investments.

🔗 Source: Jiji

🧠 Food for thought

Implications, context, and why it matters.

Up to ¥2 trillion private loan narrows the gap, funding still short

Rapidus plans up to ¥2 trillion in loans starting fiscal 2027, the first large private financing. With ¥1.7 trillion committed by the government plus ¥1 trillion planned, potential funding reaches about ¥4.7 trillion, still below the ¥5 trillion needed for mass production 1.
The company now estimates ¥7 trillion total investment 1. Even with the new loans, about ¥2.3 trillion remains unfunded.
Timing looks tight. Loans start in fiscal 2027, the year Rapidus targets mass production in the second half 1, which leaves little room to raise more capital if the 2025 pilot line startup (a pre-production line used to validate manufacturing processes) slips or costs rise 2.

Suppliers can enter Rapidus’ procurement now

Rapidus aims to deploy around 10 extreme ultraviolet (EUV) lithography machines across IIM-1 and IIM-2 (Rapidus fabrication plants in Hokkaido) 3. Pilot line construction was about 50% complete in September 2024 4. Vendors in chemicals and gases, wafers, cleanroom gear, or factory automation can contact Rapidus procurement ahead of the April 2025 startup 2.
About 4,000 construction workers are involved 4. That opens work for facilities contractors, utilities providers, and staffing firms in the local area.
Early vendor registration can unlock contracts and incentives. Japan set about $27 billion for chip subsidies in 2020–2024 5. It also unveiled a $65 billion AI and semiconductor package in late 2024 5, creating co-investment options for firms that support the national chip revival plan.