Japan to pay up to $320 million to US companies for chip production


TOKYO (AP) — Japan is offering up to ¥46.6 billion ($322 million) in subsidies to a major U.S. chipmaker to support plans to produce advanced memory chips at its Hiroshima factory. Japan’s trade minister said on Friday.

Micron Technology Grant Announcement Comes Shortly After U.S. Vice President Kamala Harris visits Japan The two countries are stepping up cooperation to expand manufacturing and supply chains of critical materials.

Japan’s Minister of Economy, Trade and Industry Yasutoshi Nishimura said, “We hope this transaction will contribute to further expanding cooperation between Japan and the United States in the semiconductor sector.”

He said the government approved the deal on Friday under laws related to economic security.

Japan has set up its own fund to support semiconductor production, and Friday’s deal is the third such deal.

between her travel to asia This week, Mr. Harris met with Japanese officials and executives of chip companies to ask for their cooperation in boosting chip development and production amid China’s growing influence.

Micron was one of the companies involved in the talks with Harris, along with Tokyo Electron, Nikon, Hitachi High-Tech Group and Fujitsu.

Micron said in a statement that the grant will be used to boost production capacity, accelerate development of its 1-beta DRAM, a key memory chip for advanced data facilities, upgrade 5G networks and Artificial intelligence technology will also accelerate, he said.

The United States is committed to enhancing technical cooperation with Japan, South Korea, and Taiwan. Seeking to expand domestic semiconductor productionamong China’s own investments in computer chips.

Friday’s agreement “represents investment and integration in both economies and supply chains,” said US Ambassador to Japan Rahm Emanuel, who has promoted economic security between the two countries. “And it will only accelerate from this.”

Nishimura has emphasized the US-Japan alliance in semiconductors, energy and other areas.

Japan was once the world leader in computer chip manufacturing, but its position has declined over the past two decades, and there is growing concern that it will fall behind.

Japan has allocated ¥476 billion ($3.3 billion) in subsidies for a new Kumamoto factory under construction in a partnership between Taiwan Semiconductor Manufacturing Company, Sony Group and Denso.

Japan is also providing up to ¥92.9 billion ($644 million) for another facility in Mie Prefecture jointly built by Western Digital Corp. and Kioxia Corp.