Japan's Rapidus is in talks with around 50 potential clients, including AI startups, for the mass production of advanced chips by 2027, Nikkei Asia reported Saturday, citing CEO Atsuyoshi Koike.

A prototype line in Hokkaido has begun partial operations and is expected to be fully running within weeks, the report said.

Koike said "we are in discussions with GAFAM [Google, Apple, Facebook, Amazon and Microsoft] and startups that design chips for artificial intelligence," Nikkei reported.

In a statement posted on its website on April 7, the semiconductor company clarified that the reference to "GAFAM" companies was intended as an example of the types of organizations it is in discussions with, and not a disclosure of specific customers.