Japan Will Pay Up To $320M For The Chip Manufacturing Of A US Company

Japan has provided a subsidy to a major U.S. chipmaker of up to 46.6 billion Japanese yen (322 million dollars) in support of its plan to make advanced memory chips at Hiroshima's factory, according to the Japanese Trade Minister.

Micron Technology was announced to be subsidized following the U.S. Vice-President Kamala Harris's visit to Japan. The two countries are stepping up cooperation in expanding manufacturing and supply chain 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 stated.

According to him, the government approved Friday's deal under a law relating to economic security.

Japan has its own fund to help support its semiconductor production. Friday's agreement marks the third such deal.

Harris visited Asia this week and met with Japanese officials as well as executives from semiconductor companies to discuss ways to strengthen semiconductor production and development amid China's increasing influence.

Micron, Hitachi High-Tech Group and Fujitsu Ltd were among the companies who attended the meeting with Harris.

Micron stated in a statement that it will use the subsidy for production enhancement and faster development of its 1-beta RAM -- memory chips critical to advanced data facilities, as well as technology to upgrade the 5G network and artificial intelligence.

The United States is trying to strengthen its technology cooperation with Japan and South Korea, as well as increase its domestic semiconductor production, despite China's investment in computer chips.