Japan's Minister of Economy, Trade and Industry Yasutoshi Nishimura said that as part of efforts to ensure a stable supply of semiconductors, the Japanese government will provide more than $1 billion in aid to Micron Technology Inc's memory chip project at its Hiroshima plant.
Nishimura said on Tuesday that the government had approved up to 192 billion yen ($1.28 billion) in financial support to develop and produce memory chips at Micron's Hiroshima plant.
Nishimura said the chips, made with the latest technology, will be used in generative artificial intelligence, data centers and autonomous driving, adding that the investment is important at a time when the industry is sluggish because demand for these applications is expected to increase in the future.
Micron said in May that it would invest about $3.6 billion to manufacture advanced process memory chips in Japan with the support of the Japanese government.
The U.S. chipmaker plans to buy and install some of its most advanced chip manufacturing equipment, known as EUV lithography, at its plant in Hiroshima.