Japan to Provide Up to 159 B. Yen in Aid to Israeli Chipmaker

Tokyo, July 14 (Jiji Press)–Japan’s industry ministry said Tuesday that it will provide up to 159 billion yen in subsidies to the Japanese unit of Israel’s Tower Semiconductor Ltd. Tower Partners Semiconductor Co., based in Toyama Prefecture, central Japan, plans to invest a total of about 600 billion yen to mass-produce cutting-edge semiconductors for optical communications at factories in Uozu, Toyama, and Myoko, Niigata Prefecture. The subsidies are part of the ministry’s efforts to ensure a stable supply of semiconductors, which are designated as “specified critical products” under the economic security promotion law. Optical communication semiconductors are essential for photonics-electronics convergence technology, which uses optical signals to transmit and process information. They are also used in artificial intelligence data centers. Tower Semiconductor will collaborate with NTT Inc. and other partners on the project. NTT promotes the Innovative Optical and Wireless Network, or IOWN. The company will also supply products to Japanese companies on a priority basis if the supply-demand balance is tight. It aims to produce products equivalent to 18,000 12-inch wafers per month at the Niigata and Toyama plants. The Niigata plant is scheduled to start operations in May 2027, and new production equipment will be installed at the Toyama plant in 2028. END [Copyright The Jiji Press, Ltd.]