Japan's Rapidus Targets ¥100 Billion Funding Boost for Chipmaking Expansion

Japanese chip startup Rapidus is looking to secure ¥100 billion ($696 million) through a new share issuance to fuel its chip development initiatives.

The company is seeking ¥80 billion from current shareholders including major players such as Toyota Motor, Sony Group, SoftBank, and MUFG Bank. In addition, Rapidus aims to raise ¥5 billion each from Mizuho Bank and Sumitomo Mitsui Banking, and another ¥10 billion from the Development Bank of Japan.

The funds will be used primarily for the construction of Rapidus' new foundry in Hokkaido. The startup is also set to benefit from substantial subsidies, which are expected to further support its expansion plans. Shareholders and potential investors have been asked to provide their feedback by the end of this month as Rapidus moves forward with its funding efforts.