Meiguang received a subsidy of 1.5 billion US dollars from Japan! The first EUV will be introduced to Japan to capture next-generation chip technology

Source: Tiantian IC

    Bloomberg reported on the 18th that according to insiders, Micron is preparing to receive approximately 200 billion yen (approximately 1.5 billion US dollars) in financial subsidies from the Japanese government to help it produce next-generation storage chips in Japan. This is the latest measure taken by Japan to strengthen domestic semiconductor production.

    Insiders have stated that Micron will use the funds to install ASML‘s EUV advanced chip manufacturing equipment at its factory in Hiroshima to manufacture DRAM chips. This funding may be announced during a meeting with a "chip executive delegation" including the CEO of Meguiar on Thursday, by Shoda Yoshio of Japan.

    Foreign media stated that this financing represents Japan‘s determination to continue developing its semiconductor industry. In the case of increased tension between China and the United States, Japan‘s semiconductor factories can serve as a backup for Taiwan, China. The Japanese government has previously spent billions of dollars to encourage TSMC to increase its production capacity in Japan; At the same time, we also provide funding for Rapidus, a domestic chip company, and hope to produce chips with a 2nm process in Japan by 2027.

    After the successful transaction between Japan and Micron, it will bring EUV lithography equipment to Japan for the first time, which is a step taken by the government in pursuing cutting-edge manufacturing.

    In addition to meeting with executives in the chip industry, Japan‘s Kishida Masao will also meet with leaders from seven countries, including the President of the United States, in Hiroshima, Japan from May 19th to 21st.

    A commentator from research firm Omdia stated that "Meguiar‘s chip factory in Hiroshima will play a crucial role in strengthening the semiconductor chip supply chain of the G7. This is a crucial step for the company." The commentator also stated that Meguiar‘s new factory in Hiroshima, formerly the former production base of the defunct memory production company Elpida, was built by Meguiar, At present, some of the best chip engineers from American companies are also employed here. As early as 2022, the Japanese Ministry of Economy, Trade and Industry also stated that it would provide up to 46.5 billion yen of funding to Micron to carry out chip production here.

    Since 2013, Micron has invested over $13 billion in Japan and also mass-produced 1-beta DRAM chips in Japan in 2022. After receiving the latest funding, Meiguang will be used to produce more advanced 1-gamma process chips, which are planned for mass production in 2024. Meiguang will also invest funds for the Hiroshima factory in Japan, but the exact amount is unknown; The Hiroshima City Government is also expected to support the project. Japan Electric Power Company and ASML from the Netherlands will also benefit from Meguiar‘s investment in Japan.

    Due to oversupply in the storage chip industry this year, Meguiar suffered a loss of over $2 billion in the first quarter, and the company has taken a series of measures such as salary cuts and layoffs. Meiguang stated that the DRAM market will bottom out in the second half of 2023.