In order to strengthen economic security, the Japanese government will provide 900 billion won in large-scale funds to invest in new facilities of Kioxia, a semiconductor company.
Kioxia is a company separated from Toshiba, Japan’s No. 1 semiconductor company, and currently occupies the second largest market share of NAND-type flash memory in the world. Local media believe that Kioxia is preparing to counter Samsung Electronics, the No. 1 memory semiconductor company, with the support of the Japanese government. According to Asahi Shimbun, Japan’s Ministry of Economy, Trade and Industry announced that it will provide 92.9 billion yen (890 billion won) for facilities under construction at the Yokkaichi plant in Kioxia. It is about a third of the total investment. The construction is undergoing a joint venture between Kioxia and Western Digital in the U.S.
The two companies plan to invest a total of 278.8 billion yen (about 2.67 trillion won) to mass-produce three-dimensional flash memory. The newspaper reported that this product has twice the capacity and processing speed of existing products and is expected to be used for the latest smartphones and PCs. The first shipment is expected in February 2023.The subsidy will be covered by a fund (617 billion yen in total) created by the Japanese government to strengthen the foundation for high-tech semiconductor production. The Japanese government has already decided in June to provide up to 476 billion yen (about 4.56 trillion won) to the plant built in Kumamoto by Taiwan’s TSMC, the world’s largest foundry company. More than 90% of the fund will be exhausted with the support of Kioxia.
Koichi Hagida, Minister of Economy, Trade and Industry, explained at a press conference the previous day that the support plan “was determined to contribute to stable production of semiconductors.” The Economic Security Promotion Act passed in May includes strengthening the supply chain of strategic materials such as △ semiconductors △ securing safety of infrastructure industries △ public-private cooperation in high-tech R&D △ patent disclosure of military-only technologies.Security guards control access to JASM’s semiconductor plant construction site in Kikuyomachi, Kumamoto Prefecture, on June 2. JASM is a joint venture established by TSMC, a Taiwanese semiconductor company, and has a partial stake in Sony and Denso in Japan. The Japanese government has decided to support half of the construction cost and is scheduled to be completed in December next year. Kioxia, Change of Mission in Toshiba Memory… It is currently second in the NAND flash market.Kioxia is a company that Toshiba, Japan’s No. 1 semiconductor company in the past, sold its stake in the semiconductor business in 2017 due to losses from its subsidiary Westinghouse. In October 2019, the company changed its name from Toshiba Memory to Kioxia. Currently, NAND-type flash memory is second in global market share.
Asahi said, “Kioxia is working with Western Digital to counter Samsung Electronics, the industry’s No. 1,” adding that it is also building a new facility at its Kitakami plant in Iwate Prefecture.”We will continue to produce high-tech flash memories, which are important semiconductors from an economic and security perspective, in Korea and contribute to the development of domestic and regional economies and related industries,” said President Nobuo Hayasaka.
MIKE CHOI
ASIA JOURNAL
