Japan to Subsidize Tower Semiconductor with 160 Billion Yen for Chip Production
The Japanese Ministry of Trade will allocate 160 billion yen ($987 million) to support Tower Semiconductor's operations in Japan. This investment aims to enhance semiconductor manufacturing for photonics-electronics convergence technology, crucial for high-speed communications.
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The Japanese government will invest 160 billion yen in Tower Semiconductor Japan G.K. to support semiconductor production related to photonics-electronics convergence. Tower plans to start operations in Niigata in May 2027, with combined output from its Toyama and Niigata facilities projected at 18,000 wafers per month.
The total project investment is estimated at 600 billion yen. Under the Economic Security Promotion Law, semiconductors are classified as critical materials, qualifying them for government backing. Post-investment, Tower must maintain production for 10 years and enhance collaboration with local firms, including NTT Inc., which is advancing the Innovative Optical and Wireless Network (IOWN) technology.
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