Japan will provide $1.3 billion in subsidies to Micron to produce cutting-edge chips
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The Japanese government on Tuesday, October 3, approved the allocation of subsidies in the amount of ¥192 billion ($1.3 billion) to the American Micron Technology to establish the production of advanced microchips at a plant in Hiroshima, reports Bloomberg.
As Economy Minister Yasutoshi Nishimura explained, these subsidies will help Micron install deep ultraviolet photolithography equipment from the Dutch firm ASML Holding, which is required for the production of cutting-edge chips. According to him, such chips will be needed to create artificial intelligence, data centers and autonomous driving technologies. The company expects to begin production at this plant in 2025.
Financial support provided by the Japanese government covers almost 40% of Micron’s investment plans in Japan. Micron announced back in May of this year its intention to invest $3.7 billion in setting up microchip production in Japan after the company’s business in China was under threat. In April this year, the China Cybersecurity Administration announced about the initiation of an investigation into the American semiconductor manufacturer. Chinese authorities said then that Micron products supplied to China could pose a hidden threat to national security, given that the American company’s technologies are used in the “critical” telecommunications infrastructure of the PRC.
How Huawei Corporation was caught creating “secret factories” for the production of microchips – in the Kommersant material “Underground Chip Empire”.
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