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Development started in 1941. Initially, the vehicle was developed as a light tank; however, as the model gradually received extra armor and armaments, it was reclassified as a medium tank. Production of the M7 started by the fall of 1942. However, since the M7 was inferior to the mass-produced M4 Sherman in all parameters except speed and dimensions, the production was stopped. A total of 7 vehicles were produced.

The Type 3 Chi-Nu medium tank is a modification of the Тype 1 Chi-He with a new turret and gun. The tank was the most powerful among wartime Japanese mass-produced vehicles. However, only 60 vehicles were manufactured due to shortages of components and materials.