According to the “Nikkei Shimbun” report, Japan’s Ministry of Economy, Trade and Industry is increasing subsidies for Micron’s Hiroshima factory from $320 million to $1.29 billion to strengthen the domestic semiconductor supply chain. For the Japanese government, the payment is part of a larger plan that includes investing billions of yen in various chip companies aimed at strengthening Japan’s semiconductor capabilities.
It is learned from reports that Micron plans to start mass-producing complex memory chips using the 1γ process (third-generation 10-nanometer node) that relies on extreme ultraviolet (EUV) lithography by 2026, so the company needs to obtain funds as soon as possible. .
Japan’s Ministry of Economy, Trade and Industry’s massive two-year budget of 2 trillion yen ($13.385 billion) is explicitly earmarked for subsidies related to semiconductor investment. Among them, TSMC’s Kumamoto factory received up to 476 billion yen ($3.1857 billion) in funding, and the cooperation between Kioxia and Western Digital was supported by subsidies worth 92.9 billion yen ($621 million).
The huge capital infusion into semiconductor companies underscores Japan’s commitment to reducing its reliance on overseas chip suppliers and rebuilding its domestic semiconductor industry. Japan aims to avoid potential risks associated with disruptions to international supply chains by strengthening domestic capabilities to ensure smooth and robust internal supply of key technology components.
