Japan will provide up to 192 billion yen ($1.3 billion) in additional subsidies for U.S. chipmaker Micron Technology Inc.'s plant in Hiroshima Prefecture, the industry minister said Tuesday, as the country tries to strengthen its chip supply chain.
The move, which comes on top of the up to 46.5 billion yen aid announced earlier, adds to Japan's efforts to ensure a stable supply of chips at a time when rising tensions between the United States and China are increasingly posing a threat to its economic security.
Micron has said it plans to invest up to 500 billion yen in Japan in the next few years and will become the first chipmaker to introduce extreme ultraviolet lithography machines -- state-of-the-art equipment for manufacturing advanced semiconductors -- in Japan.
The company is slated to start mass production of next-generation 1-gamma dynamic random access memory chips in 2026.
Micron is not the only chip company to receive financial support from Japan.
The country has decided to provide up to 476 billion yen to Taiwan Semiconductor Manufacturing Co.'s factory to be built in Kumamoto Prefecture, southwestern Japan. It is also giving up to 92.9 billion yen in subsidies to domestic chipmaker Kioxia Corp.
"It is important to make investments" in areas where demand is expected to increase, Economy, Trade and Industry Minister Yasutoshi Nishimura told a press conference.