Tokyo, Oct. 14 (Jiji Press)–A U.S. semiconductor plant project has been selected for the third round of Japanese funding in the United States under the bilateral tariff agreement, Jiji Press learned Wednesday. Japan’s Renesas Electronics Corp. is expected to participate in the project led by U.S. semiconductor contract manufacturer GlobalFoundries Inc. In February, Renesas and GlobalFoundries announced plans to jointly develop semiconductors for next-generation vehicles. Several trillion yen is expected to be provided for the project, as part of the 550-billion-dollar Japanese loans and investments pledged under the tariff deal. Ahead of the U.S. midterm elections in November, the administration of President Donald Trump appears eager to build a track record with Japanese funding and achieve results that will appeal to voters. The Japanese government also aims to leverage funding opportunities to enhance economic security, including strengthening supply chains, and help Japanese companies with advantages in semiconductor equipment and related fields expand overseas. Japan and the United States are also discussing possible Japanese funding for a project to build a next-generation small modular reactor in the United States. The two countries have so far agreed on six projects worth 109 billion dollars, or about 20 pct of Japan’s total funding pledge. Funds have been transferred for some projects, including artificial diamond production and gas-fired power generation. Meanwhile, approval has been revoked for a project to develop U.S. crude oil export infrastructure. END [Copyright The Jiji Press, Ltd.]
