This, on the surface, makes logistical sense. Chitose (the proposed location) is the international airport for and largest airport in Hokkaido (New Chitose Airport). Setting up a fab and related facilities right next to this location would seem to have obvious benefits.
Japan tends to be a favorite for most enterprise SaaS companies when opening an APJ sales foothold - no other Asian economy is of a similar size and open to Western firms.
Additionally, a Tokyo HQ often manages your South Korea and Taiwan operations as well because of legacy business ties from the colonial era as well as the flying geese era. That said, Sapporo does remain a bit of a niche area like Seattle or Portland before semiconductors because of how dominant Tokyo, Osaka, and Nagoya are.
Knock on wood the Rapidus helps spark a Japanese Beaverton.