Japan increases Micron EUV fab subsidies to $1.29 billion

News from this site on September 30, according to the "Nikkei Shimbun" report, Japan's Ministry of Economy, Trade and Industry is increasing subsidies for Micron's Hiroshima factory from US$320 million to US$1.29 billion (Note from this site: currently about 9.417 billion US dollars) RMB) to strengthen the domestic semiconductor supply chain. For the Japanese government, the payment is part of a larger plan that includes investing billions of yen in various chip companies and aims to strengthen Japan's semiconductor capabilities.

This site learned from reports that Micron plans to start using the 1γ process (third generation) that relies on extreme ultraviolet (EUV) lithography by 2026. 10nm node) produces complex memory chips in high volumes, so the company needs funding quickly.

Japan’s Ministry of Economy, Trade and Industry’s massive two-year budget of 2 trillion yen ($13.385 billion) is explicitly earmarked for subsidies related to semiconductor investment. Among them, TSMC’s Kumamoto factory received up to 476 billion yen ($3.1857 billion) in funding, and the cooperation between Kioxia and Western Digital was supported by subsidies worth 92.9 billion yen ($6.21).

This huge capital injection into semiconductor companies highlights Japan’s commitment to reducing its reliance on overseas chip suppliers and rebuilding its domestic semiconductor industry. Japan aims to avoid potential risks related to disruptions in international supply chains by strengthening domestic capabilities to ensure smooth and strong internal supply of key technology components

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