The Japanese authorities are ready to subsidize the production of

The Japanese authorities are ready to subsidize the production of chips in exchange for certain guarantees

So far, efforts by the Japanese authorities to support the national semiconductor industry with large budgets have not been impressive, but a certain legal framework has already been put in place over the past year. According to the existing rules, companies that produce chips and raw materials for them in Japan can only receive subsidies if certain requirements are met. At least they will only be able to throttle production in ten years.

    Image source: Canon

Image source: Canon

Told about the nuances of the national program to support the semiconductor industry in Japan Nikkei Asian Review. The support budget for the outgoing fiscal year 2022 provides approximately $10 billion for related needs, with approximately $2.8 billion used to organize the production of components, equipment and materials identified as critical to the local economics apply, but do not apply advanced technical processes. In particular, these are power electronics, microcontrollers and DACs.

Manufacturers of such components can be reimbursed up to a third of all costs for the construction of new plants and plants, but in return they must commit to maintaining the production of such products for the next ten years. If a shortage, give priority to supplying the local market. At the same time, a foreign company, and not just a Japanese one, can also be a subsidy recipient.

In the commodity segment, the subsidy will be even more generous, in which case manufacturers can receive up to 50% of all funds needed for the project from the Japanese government. Primary raw materials are, for example, noble gases and technical gases. The amount of funding in the current financial year was 68% higher than in the previous year. Of course, if we take into account that Rapidus alone will need up to $ 54 billion to organize the production of 2nm chips in Japan, then the funds allocated by the authorities will clearly not be enough to qualitatively change the situation. In addition, some market participants fear that overstimulating such activities will lead to global overproduction of chips.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

Add Comment

Click here to post a comment