The Japanese government yesterday approved ￥774 billion (US$6.8 billion) in funding for domestic semiconductor investment, backing up Japanese Prime Minister Fumio Kishida’s commitment to make the nation a major global provider of essential computer chips.
The package, part of an extra budget for this fiscal year that the Cabinet approved yesterday, consists of three parts: ￥617 billion to fund domestic investment into cutting-edge chip manufacturing production capacity, ￥47 billion for legacy production such as analog chips and power management parts, and ￥110 billion for the research and development of next-generation silicon.
Tokyo is to spend part of the ￥617 billion package on a planned Taiwan Semiconductor Manufacturing Co-Sony Group Corp plant in Kumamoto Prefecture.
While the Japanese Ministry of Economy, Trade and Industry has not elaborated on the exact amount that is to be used for the project, it has said it would pay “up to half” of the total investment needed for a project in this category.
For legacy chip production, aid for up to one-third of the total capital expenditure would be provided, the ministry said.
The approved budget is just the beginning of increased investment in the sector, with Japan’s ruling party and government making it a priority to support companies beefing up semiconductor production.
Alibaba Group Holding Ltd (阿里巴巴) founder Jack Ma (馬雲) has been living in Tokyo for almost six months after disappearing from public view following China’s crackdown on the tech sector, the Financial Times reported yesterday, citing multiple unnamed sources. The billionaire has kept a low profile since the crackdown, which has included Chinese regulators scrapping the initial public offering of Ma’s Ant Group Co (螞蟻集團) and issuing Alibaba with record fines. However, the Times said he has spent much of the past six months with his family in Tokyo and other parts of Japan, along with visits to the US and Israel. The
FACTORY TUMULT: The departure of new workers impact production less than the quarantines imposed on existing employees, a worker at China’s ‘iPhone city’ said Turmoil at Apple Inc’s key manufacturing hub in Zhengzhou is likely to result in a production shortfall of almost 6 million iPhone Pro units this year, a person familiar with assembly operations said. The situation remains fluid at the plant and the estimate of lost production could change, the person said, asking not to be named discussing private information. Much depends on how quickly Hon Hai Precision Industry Co (鴻海精密), the Taiwanese company that operates the facility, can get people back to assembly lines after violent protests against COVID-19 restrictions. If lockdowns continue in the weeks ahead, production could be set further
‘REVOLUTION’: Elon Musk complained over a 30 percent fee Apple collects on Apple Store transactions and said the technology company has stopped advertising on Twitter Twitter Inc owner Elon Musk on Monday opened fire against Apple Inc over its tight control of what is allowed on the App Store, saying the iPhone maker has threatened to oust his recently acquired social media platform. Musk also joined the chorus crying foul over a 30 percent fee Apple collects on transactions via its App Store — the sole gateway for applications to get onto its billion-plus mobile devices. A series of Twitter posts fired off by Musk included a meme of a car with his first name on it veering onto a highway off-ramp labeled “Go to War,” instead
‘COMPETITIVE EDGE’: The local semiconductor sector would continue to outstrip the global industry, whose revenue is expected to contract 3.6 percent, ITRI said The production value of Taiwan’s semiconductor industry would expand 6.1 percent annually to about NT$5 trillion (US$161.5 billion) next year, as demand for advanced chips used in high-performance-computing and artificial intelligence devices are less prone to mounting inflation and external uncertainties, the Industrial Technology Research Institute (ITRI, 工研院) said yesterday. That means the local semiconductor sector would continue to outstrip the global semiconductor industry, whose output is expected to contract 3.6 percent annually to US$596 billion next year, Gartner Inc has said. However, ITRI’s latest forecast represents a downgrade from its previous projection of 10 percent growth, as demand for PCs,