According to two sources, Japan’s biggest trading house, Mitsubishi Corp (8058.T) is debating making an offer for Fujitsu’s (6702.T) chip packaging subsidiary Shinko Electric Industries (6967.T).

According to people with knowledge of the situation, Mitsubishi, which is 8.3% owned by Warren Buffett’s Berkshire Hathaway (BRKa.N), has established a team to investigate the prospect of joining the so-called back-end production process, which entails mounting chips on frames, connecting wires, and packaging.

According to other reports, Fujitsu has listed its 50% ownership in Shinko Electric for sale, now valued at around $2.6 billion. Global buyout companies Bain Capital, KKR (KKR.N), Apollo Global Management (APO.N), and Japan Investment Corp., which the government supports, are said to be interested in the offer.

One of the two sources claimed that Mitsubishi intends to submit a combined proposal with one of the prospective purchasers. The source stated that such discussions are in their early stages, and Mitsubishi has not chosen a partner.

A Mitsubishi representative said the trading company had established a section dealing with chips and materials in June and was exploring other prospects. The spokesman clarified that the business was unable to comment on specific transactions. A spokeswoman for Fujitsu stated: “It is true we are considering various options to maximize the value of the independent business, but nothing has been decided at this time.”

A representative for Shinko declined to comment. Due to the sensitivity of the material, the sources did not want to be named.

The two individuals stated that there is no assurance that a transaction will be completed. Furthermore, it wasn’t known if Mitsubishi had consulted banks on the deal.

According to reports, the sale of Shinko, a significant supplier to chip manufacturers like Intel (INTC.O) and Advanced Micro Devices (AMD.O), might further raise concerns about national economic security. Mitsubishi, a vast conglomerate whose industries span natural gas to convenience shops and clothes, would move into the chip as recent energy price instability dims the glow of a record annual performance.

Additionally, it would enable one of Japan’s most influential corporations to enter the chip market when Japan was attempting to revive a sagging semiconductor sector that once controlled the globe in the late 1980s before losing steam.

Nevertheless, Japan continues to excel in semiconductor packaging, with Shinko, Ibiden (4062.T), and Toppan Holdings (7911.T) all playing significant roles in the global chip supply chain.

Japan has defined chips as “specified critical materials” and has spent billions of dollars in subsidies to increase its capacity to develop cutting-edge chips and preserve its competitive advantage as a producer of materials and manufacturing equipment. An acquisition would also coincide with several recent semiconductor investments announced in Japan.

On Kyushu island, Taiwan Semiconductor Manufacturing Co (TSMC) (2330. TW) is constructing a $7 billion chip facility. Rapidus, a chip manufacturer funded by the Japanese government, is constructing a chip plant near Chitose. According to Reuters, Japan is also putting up subsidies for Samsung Electronics (005930. KS) for the semiconductor factories it is considering establishing that might total roughly 15 billion yen.