Japanese Government to Provide Additional 5 Trillion Won Subsidy to Micron's Japan Plant

Japanese Government Cites Procurement of 80% of Raw Materials from Domestic Companies
and Active Commitment to Talent Development as Reasons for Additional Subsidy Decision

Micron Technology's NOR Flash

The Japanese government, which has been seeking to revitalize its semiconductor industry, will provide an additional subsidy of up to 536 billion yen (approximately 5.0445 trillion won) to the Hiroshima plant of the US semiconductor company Micron Technology.

According to Kyodo News and Nihon Keizai Shimbun on September 12, the Ministry of Economy, Trade and Industry of Japan announced plans to support up to 500 billion yen of Micron's investment in production line facilities at the Hiroshima plant, as well as 36 billion yen for the development of next-generation DRAM capable of high-speed, large-capacity processing.

Micron plans to invest a total of 1.5 trillion yen in facility expansion by 2029, with about one-third of this amount to be supported by the Japanese government.

Micron stated, "With this support, the development of high-performance memory solutions for the era of artificial intelligence will accelerate even further."

The Ministry of Economy, Trade and Industry cited reasons for selecting Micron as a subsidy recipient, including the fact that approximately 80% of raw materials and other supplies are procured from Japanese companies and that the company is actively engaged in talent development.

Previously, the Ministry of Economy, Trade and Industry had provided subsidies to Micron on two occasions, and with this latest round, the total support will exceed 700 billion yen.

In addition to Micron, the Japanese government has also provided large-scale subsidies to the Kumamoto plant of Taiwan's TSMC, the world's largest foundry company, as well as to Rapidus, which was established under government initiative for cutting-edge semiconductor production.