Japan to pay up to $320M for US company’s chip production

Sep 29, 2022, 11:01 PM | Updated: Sep 30, 2022, 10:16 pm
FILE - A sign marks the entrance of the Micron Technology automotive chip manufacturing plant on Fe...

FILE - A sign marks the entrance of the Micron Technology automotive chip manufacturing plant on Feb. 11, 2022, in Manassas, Va. Japan is providing a major U.S. chipmaker a subsidy of up to 46.6 billion yen ($322 million) to support its plan to produce advanced memory chips at a Hiroshima factory, the Japanese trade minister said Friday, Sept. 30, 2022. (AP Photo/Steve Helber, File)

(AP Photo/Steve Helber, File)

TOKYO (AP) — Japan is providing a major U.S. chipmaker a subsidy of up to 46.6 billion yen ($322 million) to support its plan to produce advanced memory chips at a Hiroshima factory, the Japanese trade minister said Friday.

The announcement to subsidize Micron Technology comes on the heels of U.S. Vice President Kamala Harris’ visit in Japan as the two countries step up cooperation on expanding manufacturing and supply chains for critical materials.

“I hope the deal will contribute to further expansion of cooperation between Japan and the United States in the area of semiconductors,” Japan’s Economy and Trade Minister Yasutoshi Nishimura said.

He said the government approved the deal Friday under a law related to economic security.

Japan has set up its own fund to support semiconductor production, and Friday’s agreement is its third deal.

During her trip to Asia this week, Harris met with Japanese officials and semiconductor company executives to seek greater cooperation in strengthening semiconductor development and production amid China’s growing influence.

Micron was among the companies that participated in the meeting with Harris, along with Tokyo Electron, Nikon, Hitachi High-Tech Group, Fujitsu Ltd.

Micron said in a statement it will use the subsidy to strengthen production capacity and speed up development of the company’s 1-beta DRAM — memory chips that are key to advanced data facilities — as well as technology for a 5G network upgrade and artificial intelligence.

The United States is working to solidify its technology cooperation with Japan, South Korea and Taiwan, while trying to increase its domestic semiconductor manufacturing, amid China’s own investment in computer chips.

The deal Friday “symbolizes the investment and integration of our two economies and supply chains,” said U.S. Ambassador to Japan Rahm Emanuel, who has been promoting economic security between the two allies. “And that will only accelerate from here forward.”

Nishimura has stressed the U.S.-Japan alliance on semiconductors, energy and other areas.

Japan was once a world leader in computer chip manufacturing, but its status has eroded over the last two decades, and the country is increasingly worried about falling behind.

Japan has allocated 476 billion yen ($3.3 billion) in subsidies for a new factory in Japan’s southern prefecture of Kumamoto being built in a partnership between the Taiwan Semiconductor Manufacturing Co., Sony Group and Denso Corp.

Japan is also providing up to 92.9 billion yen ($644 million) to another facility in central Japan’s Mie prefecture jointly built by Western Digital Corp. and Kioxia Corp.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

This screengrab of body camera footage provided by the Raleigh, N.C., Police Department shows a sho...
Associated Press

Officer body camera images released from shootout with teen

RALEIGH, N.C. (AP) — Police on Thursday released body camera video from a shootout with a 15-year-old boy suspected of fatally shooting five people and wounding two more in an East Raleigh neighborhood. Officers spent several hours searching for the armed suspect, later identified as Austin Thompson, after the rampage seven weeks ago. The teen […]
13 hours ago
Associated Press

Legal push to cut Puerto Rico power company debt delayed

SAN JUAN, Puerto Rico (AP) — Efforts to restructure some $9 billion in debt held by Puerto Rico’s power company hit a new snag Thursday following multiple failed attempts to end its bankruptcy. Officials had until Thursday to submit a new proposal on how to cut the Electric Power Authority’s debt — the largest held […]
13 hours ago
FILE - Attorney Alexandra Benevento, center, speaks with reporters during a news conference announc...
Associated Press

Cheerleading abuse accusations increase to 20 with Ohio case

COLUMBIA, S.C. (AP) — The latest lawsuit in a series alleging widespread sexual misconduct across competitive cheerleading alleges that officials allowed two choreographers to continue working after they were investigated for sexual abuse. Snowballing accounts of cheerleaders’ alleged abuse have led to increased scrutiny around the sport since the founder of an elite South Carolina […]
13 hours ago
FILE - Waukesha County Circuit Court Judge Jennifer Dorow addresses Darrell Brooks during his trial...
Associated Press

Wisconsin parade crash case an issue in Supreme Court race

MADISON, Wis. (AP) — The judge who oversaw the trial of a man convicted of killing six people when he drove his SUV through a Christmas parade last year says national exposure and encouragement she got for her handling of the case is not why she is running for a pivotal Wisconsin Supreme Court seat. […]
13 hours ago
FILE - Former FBI director James Comey speaks during a Senate Intelligence Committee hearing, June ...
Associated Press

IG: Tax audits in years of Comey, McCabe reviews were random

WASHINGTON (AP) — A watchdog investigation initiated after the tax returns of two former FBI directors were subjected to intensive audits during the Trump administration has concluded that the reviews from those years were conducted at random. The Treasury Inspector General for Tax Administration said Thursday that its review had determined that the Internal Revenue […]
13 hours ago
FILE - Train tracks headed west reflect the sun setting near Chicago's Union Station, Sept. 14, 202...
Associated Press

Biden administration presses senators to avert rail strike

WASHINGTON (AP) — The U.S. economy would face a severe economic shock if senators don’t pass legislation this week to avert a freight rail worker strike. That’s the message the Biden administration is delivering personally to Democratic senators in a closed-door session Thursday. The House acted soon after a request from President Joe Biden and […]
13 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Prep the plumbing in your home just in time for the holidays

With the holidays approaching, it's important to know when your home is in need of heating and plumbing updates before more guests start to come around.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
...
Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
Japan to pay up to $320M for US company’s chip production