Tokyo-based chip startup Rapidus is looking to build a fab in Japan, Nikkei Asia has reported.

However, speaking to news outlets Rapidus, the chipmaker said that reports of a purported facility capable of manufacturing 1.4nm chips were “speculation” which it won’t comment on. The company said “any updates on [its] roadmap will come directly from [the] company.”

Rapidus was founded in November 2022 by the Japanese government and industry partners, including SoftBank, Sony, and NTT, with the aim of boosting domestic chip production. At the time, it was said the company would develop sub-2nm chips using technology licensed from IBM.

Earlier this year, the company started testing its first production line in Hokkaido, Japan, and is expected to start manufacturing 2nm chips in 2027. Nikkei Asia reports that Rapidus is planning to start the necessary research and development work for the 1.4nm fab, with construction targeted for that same year, and production expected from 2028.

In March of this year, the Japanese government allocated ¥802.5 billion ($5.4bn) to invest in the chipmaker. The total amount of public money committed to Rapidus now stands at a maximum of ¥1.72 trillion ($11.46bn).

However, a number of these funding decisions proved controversial, with some politicians criticizing the plan because it involved redirecting Covid-19 relief money that was meant to help SMEs. After the March investment was announced, Japanese ministers said that public support for the company would likely be scaled back in 2026.