Japan Pledged JPY 536 Billion to Micron, Escalating Global Semiconductor Subsidy Race

On September 12, Japan’s Ministry of Economy, Trade and Industry announced a subsidy of up to JPY 536 billion for Micron’s DRAM plant in Hiroshima, supporting new construction, production, and R&D with a focus on high-bandwidth memory and EUV lithography. Micron plans to invest around JPY 1.5 trillion at the site, targeting mass production of 1-gamma process DRAM chips by 2027. The move underscores Japan’s strategy of strengthening domestic semiconductor capabilities while attracting foreign investment, following earlier subsidies to Micron in 2022 and 2023. It comes as Japan also backs TSMC’s expansion, with the chipmaker building two fabs in Kumamoto, the first set to begin production by the end of 2024 and the second dedicated to 6nm chips.