U.S. chip maker Micron will receive up to $320 million (¥46.5 billion) in subsidies from the Japanese government to help build advanced memory chips at the Hiroshima plant.
“Micron appreciates the support of the Japanese government, and are proud to be a global partner in Japan’s effort to expand semiconductor production and advance innovation,” Micron’s executive vice president of global operations, Manish Bhatia, said. Micron said it will build its new 1-Beta dynamic random-access memory (DRAM) chips at the Hiroshima plant. U.S. Ambassador to Japan Rahm Emanuel said the partnership “symbolizes the investment and integration of our two economies and supply chains.”
The announcement came after the visit of U.S. Vice President Kamala Harris to Japan who met senior executives of more than a dozen Japanese technology to discuss the Chips and Science Act passed by the US Congress that offers $52 billion in U.S. subsidies for semiconductor chips manufacturing. “We have to diversify our reliance on essential supplies, Japan, the United States, and the world. We also understand, on this issue, that no one country can satisfy the globe’s demand,” Harris said.
Why? The U.S. is increasing its domestic semiconductor manufacturing with new investments and forming alliances with Japan, South Korea, and Taiwan amid increasing tension and technological rivalry with China to stop Beijing from reaching the cutting edge of the industry. Beijing has laid out ambitious plans to become the global leader in domestic semiconductor development, next-generation technology infrastructure, artificial intelligence, and other advanced technology sectors.
The U.S. aims to build back the chip and semiconductors industry and overtake China by ramping up measures to restrict Beijing’s ability to produce advanced chips and secure dominance over strategic technology. The Biden administration plans more curbs on U.S. shipments to China of semiconductors used for artificial intelligence and chip-making tools. The U.S. Commerce Department has put on its export restriction list about 600 Chinese entities related to telecommunications and information to semiconductors and aerospace.
World’s top semiconductor producers
Semiconductors are an essential component of the microchips that power virtually every modern electronic device from smartphones to cars. Taiwan, China, and South Korea combine for roughly 87% of the global foundry market.
- Taiwan
- South Korea
- Japan
- China
- United States
