By Kaori Kaneko

TOKYO (Reuters) – Japanese chip foundry venture Rapidus plans to open an office on the West Coast of the United States by the end of this year, TV Tokyo reported on Tuesday citing the company’s president.

“It is extremely important to create a fully fledged business base as many of our customers will initially be in Silicon Valley,” TV Tokyo quoted Rapidus President Atsuyoshi Koike as saying during a trip to the U.S.

Rapidus aims to manufacture cutting-edge chips in partnership with IBM and Belgium-based research organisation Imec.

Countries around the world are aiming to secure stable supply of chips amid tensions between the U.S. and China.

Rapidus, which broke ground on its plant in Japan’s northern city of Chitose in September, is among domestic and foreign chipmakers receiving government subsidies to produce chips locally.