The Japanese government said Tuesday that Western Digital (WDC.US) and from Toshiba (Toshiba) spun off armor man (Kioxia Holdings) will receive about $680 million worth of subsidies from the Japanese government to improve the scale of production of memory chips. This report comes at a time when the world continues to deal with supply chain shortages and uneven recovery of semiconductor production after the new crown epidemic.
According to media reports, the Japanese Minister of Economy and Trade Koichi Hagiota said at a press conference:Â “We believe that this investment will help stabilize the production of advanced memory chips in Japan.” “This will help the U.S.-Japan partnership in the semiconductor field.”
The report also said that Koichiro Hagiota and Japanese Foreign Minister Yoshi Hayashi are scheduled to visit the United States this week to discuss with their U.S. counterparts how the two countries can cooperate further on security issues involving industrial and economic policies.
Earlier this month, Deutsche Bank cut earnings estimates for Western Digital and its rival Seagate Technology (STX.US), while noting that the recent weak performance of the industry will likely have a spillover effect on cloud computing and enterprise spending.