Rapidus seeking new loans

Rapidus is in talks with Japanese lenders following a forecast of a $7 billion funding gap in its programme to set up a 2nm chip pilot line by 2025 and a mass production line by 2027, reports Kyodo News.

The company had estimated a cost of $14 billion for the pilot line and another $7 billion for the volume production line. However it is reported that the company is now forecasting it will need another $7 billion to get the pilot line established.

The company has entered into talks with MUFG Bank, Sumitomo Mitsui Bank, Mizuho Bank and the Development Bank of Japan (DBJ) for a loan of around $690 million.

It is also asking for new investment from its corporate backers Toyota, Sony, NTT, NEC, SoftBank, Denso and Kioxia who initially backed Rapidus with $50 million.

The Japanese government has agreed to put up $6.3 billion.