Micron, Probed by China, to Get $1.5 Billion Funds From Japan for Next-Gen Chips
Takashi Mochizuki and Ian KingMay 18, 2023, 8:24 am
Micron, Probed by China, to Get $1.5 Billion Funds From Japan for Next-Gen Chips
(Bloomberg) -- Micron Technology Inc. is poised to land about ¥200 billion ($1.5 billion) in financial incentives from the Japanese government to help it make next-generation memory chips in the country, according to people familiar with the matter, the latest step in Tokyo’s effort to bolster domestic semiconductor production.
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The US company will use the money to install advanced, EUV chipmaking equipment from ASML Holding NV at its facility in Hiroshima to fabricate DRAM chips, said the people, asking not to be identified because the agreement isn’t public. The funding is likely to be announced as Japanese Prime Minister Fumio Kishida meets Thursday with a delegation of chip executives, including Micron Chief Executive Officer Sanjay Mehrotra.
Tokyo Electron Ltd. spearheaded a rally in chipmaking gear suppliers, particularly those that provide gear or technology that support EUV. It rose as much as 6.4% in early Tokyo trading, while peers such as Lasertec Corp. and Hoya Corp. rose more than 3%.
The financing is the latest sign of Japan’s ambitions in developing its own semiconductor industry, a potential backup to Taiwan amid intensifying tensions between the US and China. The government is already spending billions of dollars to encourage Taiwan Semiconductor Manufacturing Co. to add production capacity in the country, and to finance a domestic chip venture, Rapidus Corp., with aspirations to make 2-nanometer chips by 2027. The Micron deal will bring EUV equipment to Japan for the first time, a step toward cutting-edge manufacturing the government has sought.
