South Korea's Samsung Electronics Co. will receive a subsidy of up to 20 billion yen ($140 million) to build a new research and development facility for advanced semiconductors near Tokyo, Japan's industry ministry said Thursday.
The provision of the subsidy for the facility in Yokohama to one of the world's leading chipmakers is part of Japan's efforts to increase domestic chip production.
Amid heightened geopolitical tensions in Asia and technological rivalry between the United States and China, Japan has been trying to bolster its supply chains for semiconductors, designated as critical goods by the government, by luring investment from firms abroad.
"Companies from across the world are very interested in investing in Japan now," Japanese Prime Minister Fumio Kishida said at his office during a public-private sector meeting aimed at boosting investment.
Economy, Trade and Industry Minister Ken Saito and Masakazu Tokura, chairman of the Japan Business Federation, also known as Keidanren, along with company executives joined Kishida in the meeting.
Semiconductor investments by foreign firms currently aided by the Japanese government include those by Taiwan Semiconductor Manufacturing Co. in Kumamoto Prefecture, Micron Technology Inc. in Hiroshima Prefecture and Western Digital Corp. in Mie Prefecture.