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Japan to give Micron Technology up to $320 mln to boost chip output in Hiroshima

vwdhfgeyug by vwdhfgeyug
September 30, 2022
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Japan to give Micron Technology up to $320 mln to boost chip output in Hiroshima
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TOKYO, Sept 30 (Reuters) – Japan will give U.S. chipmaker Micron Know-how (MU.O) a subsidy of as much as 46.5 billion yen ($320 million) so it could construct superior reminiscence chips at its plant in Hiroshima, the commerce and business ministry mentioned on Friday.

The monetary help announcement, which follows the go to to Japan by U.S. Vice President Kamala Harris, is the newest instance of rising cooperation between Washington and Tokyo in chip manufacturing amid rising pressure and an intensifying expertise rivalry with China.

Japan in July mentioned it was giving 92.9 billion yen to U.S. agency Western Digital Corp (WDC.O) to spice up flash reminiscence chip output at a Japanese plant operated with native accomplice Kioxia Holdings, which was spun off from Toshiba Corp (6502.T).

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That announcement got here forward of a visit to the USA by then business minister Koichi Hagiuda for talks on semiconductor cooperation that led to an settlement to ascertain a joint analysis centre for next-generation chips.

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Japan’s determination to subsidise Micron’s manufacturing plans comes after the chipmaker on Thursday mentioned it was reducing its funding plans by 30% amid a fall in demand for PCs and smartphones. read more

Japan can also be offering funds for Taiwan Semiconductor Manufacturing Co (2330.TW) to construct a chip plant in Japan together with Sony Corp (6758.T) and auto elements maker Denso Corp (6902.T).

As soon as the world’s largest centre of semiconductor manufacturing, Japan has seen its share of world output shrink as chipmakers have expanded capability elsewhere, significantly in Taiwan, which makes many of the world’s superior semiconductors below 10 nanometres which might be utilized in smartphones and different merchandise.

Taiwan’s proximity to mainland China, chip shortages brought on by COVID-19 disruptions and rising world demand for the important thing element has spurred concern in Japan about shortages that would undermine nationwide safety.

($1 = 144.7000 yen)

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Reporting by Tim Kelly and Kaori Kaneko; Modifying by Chang-Ran Kim and Christopher Cushing

Our Requirements: The Thomson Reuters Trust Principles.

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