Japan gives Kioxia and Western Digital $680 million to boost memory chip production

TOKYO: Japan’s government on Tuesday said it will provide as much as 92.9 billion yen ($680 million) to Kioxia Holdings and Western Digital Corp to help them boost production and ensure a stable supply of memory chips in Japan.

The subsidy is part of a broader effort to revive chip production in Japan, as tensions between China and the United States and COVID-19 pandemic disruptions spur concern that Japanese companies such as automaker Toyota Motor Corp could be hobbled by semiconductor shortages.

“We believe the investment will help stabilize advanced memory chip production in Japan,” economy and trade minister Koichi Hagiuda said at a press briefing. “It will contribute to Japan-U.S. cooperations in semiconductors.”