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In boost for semiconductor ambitions, Japan approves US$1.3 billion in subsidies for US chip firm Micron’s plant in Hiroshima
- The subsidies will help Micron install Dutch firm ASML’s extreme ultraviolet lithography equipment to make advanced chips
- The government support covers almost 40 per cent of Micron’s investment plans in Japan.
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Japan’s government approved as much as ¥192 billion (US$1.3 billion) in subsidies for Micron Technology’s Hiroshima chip factory, part of Tokyo’s efforts to bolster next-generation semiconductor production at home.
The subsidies will help the Boise, Idaho-based company install Dutch firm ASML Holding’s extreme ultraviolet lithography equipment to make advanced chips, Economy, Trade and Industry Minister Yasutoshi Nishimura said on Tuesday.
Such chips will be essential to power generative artificial intelligence, data centres and self-driving technology, he said. The support covers almost 40 per cent of Micron’s investment plans in Japan.
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“The market is rough now, but it’s essential that we invest in times like these,” Nishimura said at a regular news conference, referring to an industrywide slump that has weighed on Micron’s earnings. “This is to secure a supply of cutting-edge chips that Japan will need for its future economic security.”
The approval marks a win for Micron as it grapples with uncertainty in China, one of its largest markets.
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A bipartisan group of US senators hopes to meet Chinese President Xi Jinping next week in the country, where the company faces an ongoing inquiry by regulators. Micron has said the investigation put half of its China sales at risk.
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