TOKYO (AP) – Japan is providing a major United States (US) chipmaker a subsidy of up to JPY46.6 billion (USD322 million) to support its plan to produce advanced memory chips at a Hiroshima factory, the Japanese trade minister said yesterday.
The announcement to subsidise Micron Technology comes on the heels of US Vice President Kamala Harris’ visit in Japan as the two countries step up cooperation on expanding manufacturing and supply chains for critical materials.
“I hope the deal will contribute to further expansion of cooperation between Japan and the United States in the area of semiconductors,” Japan’s Economy and Trade Minister Yasutoshi Nishimura said.
He said the government approved the deal yesterday under a law related to economic security.
Japan has set up its own fund to support semiconductor production, and yesterday’s agreement is its third deal.
During her trip to Asia this week, Harris met with Japanese officials and semiconductor company executives to seek greater cooperation in strengthening semiconductor development and production amid China’s growing influence.
Micron was among the companies that participated in the meeting with Harris, along with Tokyo Electron, Nikon, Hitachi High-Tech Group, Fujitsu Ltd.
Micron said in a statement it will use the subsidy to strengthen production capacity and speed up development of the company’s 1-beta DRAM – memory chips that are key to advanced data facilities – as well as technology for a 5G network upgrade and artificial intelligence.
The US is working to solidify its technology cooperation with Japan, South Korea and Taiwan, while trying to increase its domestic semiconductor manufacturing, amid China’s own investment in computer chips.
The deal yesterday “symbolises the investment and integration of our two economies and supply chains”, said US Ambassador to Japan Rahm Emanuel, who has been promoting economic security between the two allies. “And that will only accelerate from here forward”.
Nishimura has stressed the US-Japan alliance on semiconductors, energy and other areas.
Japan was once a world leader in computer chip manufacturing, but its status has eroded over the last two decades, and the country is increasingly worried about falling behind.
Japan has allocated JP476 billion (USD3.3 billion) in subsidies for a new factory in Japan’s southern prefecture of Kumamoto being built in a partnership between the Taiwan Semiconductor Manufacturing Co, Sony Group and Denso Corp.
Japan is also providing up to JPY92.9 billion (USD644 million) to another facility in central Japan’s Mie prefecture jointly built by Western Digital Corp and Kioxia Corp.