Micron reveals $3.6 bn Japan chip plan after PM meets execs

Micron reveals $3.6 bn Japan chip plan after PM meets execs

Japan, like many developed nations, is worried about the fragility of existing global semiconductor supply chains
Japan, like many developed nations, is worried about the fragility of existing global semiconductor supply chains. Photo: Yuichi YAMAZAKI / AFP/File
Source: AFP

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

Micron said Thursday it will invest $3.6 billion to produce next-generation semiconductors in Japan, after Prime Minister Fumio Kishida held talks with some of the world's biggest chipmakers.

Kishida is trying to boost the domestic chip industry, after the weaknesses in global semiconductor supply chains were exposed by developments including the pandemic and the ongoing US-China tussle over advanced tech.

Attendees at the Kishida meeting on Thursday included senior executives from Taiwan's TSMC, South Korean giant Samsung, and US titans Intel, Micron and IBM.

"Micron expects to invest up to 500 billion yen ($3.6 billion) in 1-gamma process technology over the next few years, with close support from the Japanese government," the firm said in a statement, referring to the production of advanced DRAM memory chips.

The investment would "enable the next wave of end-to-end technology innovation such as rapidly emerging generative artificial intelligence (AI) applications".

Read also

'What I promised': Greek PM touts economy in re-election bid

Micron added that it would be the first firm to bring extreme ultraviolet (EUV) chip-making to Japan.

PAY ATTENTION: Click “See First” under the “Following” tab to see YEN.com.gh News on your News Feed!

It described the tech as the "most sophisticated semiconductor manufacturing process in the world".

There was no immediate confirmation of what assistance Japan might offer, though Bloomberg News earlier reported Kishida was set to hand Micron $1.5 billion in incentives.

Japan has already agreed to pour half a billion dollars into a new project to develop and make next-gen chips domestically.

That deal involves eight major companies, including Sony, SoftBank and Toyota, who are partnering in a new firm called Rapidus that hopes to begin mass production by 2027.

TSMC and Sony have also inked their own partnership for a $7 billion plant in Japan.

Last month, Europe too announced plans to ramp up local chip production, with the goal of doubling its current global market share to 20 percent by 2030.

Read also

Ikea vows lower prices as it boosts investments

'Economic coercion'

Chips are the lifeblood of the modern global economy, powering everything from cars to smartphones, and they are forecast to become a $1 trillion industry globally by 2030.

Much of the world's semiconductor manufacturing is based in Taiwan.

Fears have grown about the impact of any Chinese military action to seize the self-ruled island, which it claims as its territory.

The chip industry moves by Japan and Europe come as the United States and China lock horns over access to advanced semiconductors.

Washington has in recent years sought to prevent advanced US chip tech from being exported to China, citing national security concerns.

Japan and the Netherlands recently announced their own export restrictions on chip items, without naming China.

Still, Beijing reacted angrily, and has called for a World Trade Organization review of the measures.

Last month, Chinese authorities also announced an investigation into Micron, which they said was intended to "safeguard national security".

Read also

Battery makers turn northern French region into 'electric valley'

Kishida's meeting with chip firms came a day before he hosts G7 leaders for a summit in the city of Hiroshima.

G7 leaders are expected to call for "de-risking" of crucial supply chains, and to warn of the risks of "economic coercion" by China.

New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.