(Reuters) -Japanese chipmaker Rapidus is negotiating with Apple ( AAPL ), Google and dozens of other potential clients to mass-produce advanced chips by 2027, the Nikkei business daily reported on Friday, citing the company's CEO Atsuyoshi Koike.

A prototype chip line, which began partial operation on Tuesday at a plant in Hokkaido, is scheduled to be fully up and running within the month, the report said.

The CEO did not name any specific customers but said the company is in discussions with Google, Apple ( AAPL ), Facebook , Amazon ( AMZN ) and Microsoft ( MSFT ) .

In the field of advanced artificial intelligence chip manufacturing, TSMC holds the lion's share of the market as it supplies wafers to several leading tech firms and chipmakers in the world.

Koike said growing tensions between the U.S. and China have raised voices about requiring another vendor for chips.

Rapidus, Google, Apple ( AAPL ), Meta, Amazon ( AMZN ) and Microsoft ( MSFT ) did not immediately respond to Reuters' requests for comment.

TSMC aims to produce 2 nanometer products this year and although Rapidus will be two years behind that, the company believes it can make up the difference in manufacturing processes, the report said, citing Koike.

The Japanese government reportedly plans to invest 200 billion yen ($1.37 billion) in Rapidus this year starting April to meet its targets of commercial production in 2027.

($1 = 145.9200 yen)

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)