By Kosaku Narioka
The Japanese government will give an aid of over a billion dollars to Micron Technology's memory chip project at its Hiroshima plant, the country's trade minister said, as part of efforts to ensure stable supply of semiconductors.
The government has approved financial support of up to 192.0 billion yen ($1.28 billion) for the development and production of memory chips by Micron at the plant, Yasutoshi Nishimura, the Minister of Economy, Trade and Industry, said Tuesday.
Produced with the latest technology, the chips will be used for generative AI, data centers and self-driving, Nishimura said, adding that it was important to make the investment at a time of an industry downturn as demand for such applications is expected to increase going forward.
Micron had in May said that it would invest around $3.6 billion in advanced memory-chip making in Japan, aided by support from the Japanese government.
The U.S. chip maker plans to purchase and install some of the most advanced chip-making machinery, called the EUV lithography equipment, at its factory in Hiroshima.
Write to Kosaku Narioka at email@example.com
(END) Dow Jones Newswires