Announced that it will receive up to 92.9 billion yen in subsidies from the government for capital investment at KIOXIA Advanced Memory Plant
🟦 Government subsidies Japan for KIOXIA’s plant investment
KIOXIA (formerly Toshiba Memory) announced that it will receive up to approximately 92.9 billion yen in subsidies from the government for capital investment at its advanced memory plant. The Ministry of Economy, Trade and Industry (METI) has approved the application for a joint venture with Western Digital (WD) of the United States, which is collaborating with KIOXIA.
The subsidy is for the KIOXIA Yokkaichi Plant, which manufactures NAND flash memory. This covers some of the facilities in the seven manufacturing buildings that are scheduled to start operations in 2022. The total investment in the target equipment is about 278.8 billion yen, of which more than 30% will be subsidized by the Japan government.
🟦 Subsidies under the Japan Tipping Act
This subsidy is based on the approval of the “Project for Improvement of Specified Semiconductor Production Facilities” based on the “Act on Promotion of Development, Supply and Introduction of Systems Utilizing Specified Advanced Information and Communication Technology”. This is a Japan chip method that aims to contribute to the resilience of the semiconductor supply chain and the development of the semiconductor industry.
Under the same framework Japan the government has decided to subsidize up to 476 billion yen for TSMC’s new plant in Kumamoto Prefecture. KIOXIA has split the investment in production facilities through a joint venture with WD of the United States, and “it will also contribute to strengthening Japan-U.S. cooperation on semiconductors.”
In order to contribute to the resilience of the semiconductor supply chain and the development of the semiconductor industry, we decided to subsidize the capital investment of the KIOXIA Advanced Memory Plant from the Japan government.
The rest is a plan called Micron Technology. It is likely that subsidies will be decided in the order of Taiwanese →companies→ Japan-US joint ventures, US companies. I think it is a good thing that Japan will create jobs in semiconductor manufacturing. If possible Japan companies would be good, but I don’t have a choice.