Japan to offer Micron Tech up to $320M to boost chip production

japan offers micron 320m boost chipmaking

Japan will give Micron Technology Inc. a subsidy of equal to 46.5 billion yen ($320 million), the industry ministry announced, so it can make advanced memory chips at its Hiroshima plant, even as US chipmaker trims capital investments elsewhere.

The announcement follows a visit to Japan by US Vice President Kamala Harris and is the latest example of growing cooperation between Washington and Tokyo in chip manufacturing amid increasing technological rivalry and tensions with China.

Micron Tech said it would build its new1-Beta dynamic Random-access memory (DRAM) chips at the Hiroshima plant.

Recently, the US-based chipmaker cut overall investment plans by 30% amid a drop in demand for smartphones and computers.

The most recent component of Japan’s plan to strengthen domestic chip production comes after the nation gave 92.9 billion yen to US firm Western Digital Corp in July 2022 to boost flash memory chip output at a Japanese factory operated with Kioxia Holdings, a local partner.

This week in Japan, Vice President Harris talked to heads of semiconductor-related businesses about incentives available to manufacturers within the United States following the passage of legislation that provides $52 billion in subsidies.

Japan is also providing money to Taiwan Semiconductor Manufacturing Co Ltd. to construct a chip plant in Japan in collaboration with Sony Corp and auto parts maker Denso Corp.