Rapidus, a state-backed chip venture in Japan, is considering building a chip factory in Hokkaido, northern Japan, according to TV Tokyo.

According to the report, Rapidus will likely make a formal decision on the new factory site by the end of February.

A spokesperson for the chip venture confirmed that the governor of Hokkaido will visit its headquarters in Tokyo on Thursday to discuss plant construction.

Japan has announced an initial investment of 70 billion yen ($525 million) in Rapidus, a venture led by Sony Group Corp and NEC Corp.

Rapidus told sources earlier this month that it would require approximately 7 trillion yen ($54 billion) in mostly taxpayer funds to begin mass production of advanced logic chips in 2027.

Rapidus Corporation is a Japanese semiconductor manufacturer based in Chiyoda, Tokyo. Rapidus was founded in August 2022 by eight major Japanese corporations: Denso, Kioxia, MUFG Bank, NEC, NTT, SoftBank, Sony, and Toyota. Rapidus's goal is to increase advanced semiconductor manufacturing capacity using a 2 nm process by 2027.