Ministry of Economy, Trade and Industry of Japan, according to Nikkei Asian Review, decided to allocate about $13.4 billion to subsidize the domestic semiconductor industry over the next two years. Micron Technology’s Hiroshima plant will receive $1.29 billion of the funds.
We would like to remind you that the Japanese company Micron Technology intends to modernize its factory to start producing cutting-edge DRAM memory chips by 2026. The construction of new production lines involves, among other things, the installation of systems for working with ultra-hard ultraviolet radiation (EUV). In total, the American company Micron Technology is ready to invest around $3.35 billion in the development of its companies in Japan.
Japanese officials initially approved $320 million in subsidies for Micron, but later decided to increase the amount to $1.29 billion. In the past, the Japanese government has not been very generous in financial support measures for domestic chipmakers, and there is increasing activity in subsidizing foreign companies with facilities in Japan in order to promote the attractiveness of foreign investment in this sector of the economy.
The TSMC company in western Japan will receive $3.2 billion in government support. Kioxia and Western Digital’s joint venture in Mie Prefecture will receive up to $615 million in subsidies, according to Japanese publication Nikkei Asian Review. Private capital is also being actively channeled into the revival of the national semiconductor industry. The recently formed Rapidus consortium plans to start producing 2nm chips in Japan by 2027 following orders from local customers.