Following the revelation of a $7 billion funding gap in the budget of Rapidus the Japanese startup targeting 2nm manufacturing capability, three Japanese banks have a agreed to put up $35 million each while the Development Bank of Japan is investing $70 million, reports the Nikkei.
The banks are: MUFG Bank, Sumitomo Mitsui Bank, Mizuho Bank.
Rapidus had estimated a cost of $14 billion for the 2nm pilot line planned for 2025 and another $7 billion for the volume production line planned for 2027.
However the company is now forecasting it will need another $7 billion to get the pilot line established.
The total for establishing both the pilot and production lines is estimated at $35 billion.
Rapidus is also reported to be asking for new investment from its corporate backers Toyota, Sony, NTT, NEC, SoftBank, Denso and Kioxia
Japan’s Ministry of Economy, Trade and Industry has already decided to provide a total of $7 billion in support, but funding estimated at $28 billion is still needed.
Banks are saying that government debt guarantees are essential to extend large loans, and Rapidus is reported to be encouraging the drafting of laws allowing the government to provide additional funding and loan guarantees.
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