Japan commits $1.2B to Micron to build Hiroshima semiconductor plant

Oct. 3 (UPI) -- The Japanese government on Tuesday announced it to give U.S. semiconductor maker Micron Technology $1.2 billion to help it build a plant in Hiroshima in western Japan.

Micron, based in the United States, wants to make state-of-the-art memory semiconductors at the new plant by 2026. Japan's industry ministry said the plant investment will help boost domestic production of semiconductors and improve the country's economic security.

Micron said, in turn, it anticipates investing $3.33 billion into its work in Japan over the next few years and will be the first chipmaker to introduce extreme ultraviolet lithography machines, allowing them to produce advanced semiconductors in Japan.

Japan previously announced that it will give $3.17 billion to the Taiwan Semiconductor Manufacturing Co. to build a plant in the Kumamoto Prefecture in southwestern Japan along with giving $620 million in subsidies to local chipmaker Kioxia Corp.

Economy, Trade and Industry Minister Yasutoshi Nishimura said it was important for Japan to make those investments on the front end to spur future economic activity.

Last year, Micron announced it would build a $500 million semiconductor fabrication facility in New York that would be the largest semiconductor fabrication facility in the United States.

China in May banned companies working in its domestic information security sector from purchasing products manufactured by Micron, citing security risks posed by working with the U.S. company.