TOKYO Japan will give Micron Technology a subsidy of up to 46.5 billion yen $320 million so it can build advanced memory chips at its plant in Hiroshima, the trade and industry ministry said on Friday.
Japan is giving 92.9 billion yen to U.S. firm Western Digital Corp to boost flash memory chip output at a Japanese plant operated by local partner Kioxia Holdings, which was spun off from Toshiba Corp.
The announcement came ahead of a trip to the United States by then industry minister Koichi Hagiuda for talks on semiconductor cooperation that led to an agreement to establish a joint research centre for next-generation chips.
Japan has subsidised Micron's production plans after the chipmaker said on Thursday it was cutting its investment plans by 30 per cent due to a fall in demand for PCs and smartphones.
Japan is also providing funds for Taiwan Semiconductor Manufacturing Co to build a chip plant in Japan along with Sony Corp and Denso Corp.
Japan, once the world's biggest centre for semiconductor production, has seen its share of global output shrink as chipmakers have expanded capacity elsewhere, particularly in Taiwan, which makes most of the world's advanced semiconductors under 10 nanometres that are used in smartphones and other products.
Taiwan's proximity to mainland China, chip shortages caused by COVID 19 disruptions and growing global demand for the key component have spurred concern in Japan about shortages that could undermine national security.