US chipmaker Micron will receive up to $320mn in Japanese government subsidies, marking the first of an expected series of deals to fortify supply chains against the disruptive threat from China.
Beijing does not currently compete with Washington and Tokyo in the most advanced segment of semiconductor technology. But Covid-19 disruptions have underscored supply chain fragility, while Russia’s invasion of Ukraine has intensified fears that China could invade Taiwan, the global centre of cutting-edge chip production.
The Micron deal announced on Friday followed months of negotiations between the US and Japan to expand co-operation in semiconductor production, with the goal of reducing heavy dependence on Taiwanese chipmaker TSMC.
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