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Japan increases Micron’s Hiroshima subsidy to US$1.28 billion

Japan increases Micron’s Hiroshima subsidy to US$1.28 billion

Business news |
By Peter Clarke



Japan’s Ministry of Economy, Trade and Industry has increased the level of subsidy for Micron Technology to open up a DRAM fab in Hiroshima to US$1.2 billion, according to Nikkei.

A year ago it was reported that Japan would provide Micron Technology Inc. (Boise, Idaho) with up to 46.6 billion yen or about US$320 million (see Japan will provide Micron with $320 million subsidy). That figure has now been increased to up to 192 billion yen (about US$1.28 billion).

 

In May 2023 Micron said it will spend 500 billion yen (about US$3.34 billion) over the next few years to bring 1γ (1-gamma) DRAM process technology to its wafer fab in Hiroshima, Japan. It is said that Micron is aiming to mass-produce such DRAMs on new production lines at its factory in Higashihiroshima City.

 

The development would represent the first use of EUV lithography in Japan something that the government is eager to encourage.

The ministry plans to allocate a budget of 2 trillion yen (about US$13.3 billion) over two years for chip-related investment subsidies, Nikkei reported.

For its fourth fiscal quarter ended August 31, 2023 Micron made a net loss of US$1.43 billion on revenue of US$4.01 billion, down from US$6.64 billion in the same period a year before. For the fiscal year Micron made net loss of US$5.83 billion on revenue of $15.54 billion. The revenue was about half the US$30.76 billion in the prior year.

This low sales and losses are due to oversupply and weak prices in the memory market. The company is predicting a loss on increased sales in the current quarter but is hopeful of a recovery in 2024.

Related links and articles:

www.micron.com

News articles:

Micron to make 1-gamma DRAMs in Japan, Taiwan

Japan will provide Micron with $320 million subsidy

Micron plans for $7 billion Japanese DRAM fab

Rapidus secures US$2.3 billion to start 2nm wafer fab

Japan to provide 40 percent subsidy to TSMC, Sony venture

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