Japanese chipmaker Rapidus is in talks with major tech firms, including Apple, Google, Amazon, Microsoft, and Meta, to mass-produce advanced chips by 2027, according to Nikkei.

The company recently began partial operations of a prototype chip line at its Hokkaido facility and plans full operations by the end of the month.

Rapidus aims to enter the advanced AI chip market, currently led by TSMC.

While TSMC plans to produce 2-nanometer chips this year, Rapidus is about two years behind and will focus on improving its manufacturing processes.

CEO Atsuyoshi Koike said rising US-China tensions are boosting demand for more chip suppliers.

To support Rapidus’ goal of commercial production by 2027, the Japanese government will invest around US$1.37 billion in the next fiscal year.

Rapidus and the tech companies declined to comment.

Recent Rapidus developments