EXCLUSIVE: 3 Japan Megabanks Eye Loans of Up to 2 T. Yen to Rapidus

Tokyo, Dec. 11 (Jiji Press)–Japan’s three megabanks plan to provide loans totaling up to around 2 trillion yen in stages from fiscal 2027 to Rapidus Corp., which aims to mass-produce cutting-edge chips, Jiji Press learned Thursday. This would mark the first private-sector loan to the Japanese chipmaker, with the injection of such funds expected to boost the firm’s planned mass production, which requires a large amount of money. MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank will hold discussions with Tokyo-based Rapidus and the Japanese government on details of the planned loans. The three banks submitted a letter of intent outlining the loans’ terms. The government-affiliated Information-Technology Promotion Agency, or IPA, is expected to guarantee the loans. MUFG Bank has invested 300 million yen in Rapidus. In addition to this, the bank and the two industry peers as well as the Development Bank of Japan, a government lender, are considering a fresh investment of up to 25 billion yen in total. The government has decided to provide about 1.7 trillion yen to the chipmaker, which aims to begin mass production in fiscal 2027. Last month, it decided to invest 100 billion yen in the company through the IPA. The government plans to spend an additional 1 trillion yen on Rapidus, including investment, in fiscal 2026 and fiscal 2027, while aiming to secure over 2 trillion yen in private-sector loans through debt guarantees. It also hopes to attract a total of 1 trillion yen in investments from the private sector. MUFG Bank, Toyota Motor Corp., SoftBank Corp., Sony Group Corp., NEC Corp., NTT Inc., Denso Corp. and Kioxia Corp. have invested a total of 7.3 billion yen in Rapidus. Besides MUFG Bank, all other seven Japanese firms plan to make additional investments in Rapidus. Companies including Fujitsu Ltd. are considering newly investing in the chipmaker. END [Copyright The Jiji Press, Ltd.]