U.S. chip project significant for Japan-U.S. AI edge: Akazawa
Under the project, two new plants are set to be built in the state of New York with funding of up to $21 billion.
Japanese Economy, Trade and Industry Minister Ryosei Akazawa has lauded the U.S. semiconductor plant project chosen for the third round of Japanese funding in the United States under their tariff agreement. Akazawa highlighted that this project is crucial for the nations to collaborate and gain a competitive edge in the era of artificial intelligence.
Under the agreement signed last year, Japan committed to investing $550 billion in exchange for reduced U.S. tariffs on Japanese imports. The project, spearheaded by U.S. semiconductor contract manufacturer GlobalFoundries, involves constructing two new plants in New York State with a potential funding of up to $21 billion. Japan will contribute investment, loans, and loan guarantees through its government-affiliated financial institutions for the first plant's construction, which will see an investment of $10 billion.
The construction is expected to commence this year. Akazawa emphasized that the project will bolster the capability to manufacture semiconductors, which are vital for various sectors, including AI data centers, and will enhance economic security for both countries. Two companies, Tokyo Electron and Tokyo Ohka Kogyo, are set to supply chip-manufacturing equipment and components, while Renesas Electronics Corp. and two midsize companies will also be involved.
Renesas plans to purchase products manufactured at the plants. According to the Ministry of Economy, Trade and Industry, the benefits of the project are anticipated to extend to small and midsize companies that support the supply chain.
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