TOKYO - Micron said it will invest $3.6-billion to produce next-generation semiconductors in Japan after Prime Minister Fumio Kishida held talks with some of the world's biggest chipmakers.
Kishida is trying to boost the domestic chip industry, after the weaknesses in global semiconductor supply chains were exposed by developments including the pandemic and the ongoing US-China tussle over advanced tech.
Attendees at the Kishida meeting on Thursday included senior executives from Taiwan's TSMC, South Korean giant Samsung, and US titans Intel, Micron and IBM.
"Micron expects to invest up to 500 billion yen ($3.6-billion) in 1-gamma process technology over the next few years, with close support from the Japanese government," the firm said in a statement, referring to the production of advanced DRAM memory chips.
The investment would "enable the next wave of end-to-end technology innovation such as rapidly emerging generative artificial intelligence (AI) applications".
Micron added that it would be the first firm to bring extreme ultraviolet (EUV) chip-making to Japan.
It described the tech as the "most sophisticated semiconductor manufacturing process in the world".
Kishida told the executives that "the government will work towards further expansion of direct investment in Japan and support for the semiconductor industry", but there were no details on any financial support from Tokyo.
Bloomberg News had earlier reported that Kishida was set to hand Micron $1.5-billion in incentives.
Japan has already agreed to pour half a billion dollars into a new project to develop and make next-gen chips domestically.
That deal involves eight major companies, including Sony, SoftBank and Toyota, who are partnering in a new firm called Rapidus that hopes to begin mass production by 2027.
TSMC and Sony have also inked their own partnership for a $7-billion plant in Japan.
Last month, Europe too announced plans to ramp up local chip production, with the goal of doubling its current global market share to 20 percent by 2030.