The Japanese government has introduced strict rules for companies getting subsidies in the semiconductor and other high-tech sector, reports Nikkei. These rules are designed to stop important technologies from leaking to other countries, primarily to China and Russia. This approach is similar to what the U.S. is doing with its CHIPS Act subsidies.
Companies that get semiconductor-related subsidies from the Japanese government will have to restrict the number of employees with access to sensitive information and have personnel to sign confidentiality agreements. These measures outlined by Japan's Ministry of Economy, Trade and Industry are meant to lower the chances of important tech details accidentally getting out to companies — or countries — outside of Japan. The main goal is to keep high-value technology in Japan, a step seen as crucial for the country's economic strength.
Companies getting grants from Japanese government include multinationals, such as Micron and TSMC, as well as Rapidus, a Japanese foundry startup that is set to work both with IBM and with European partners on new process technologies. How the Japanese restrictions affect operations of these companies in the country, particularly in the field of research and development is something that remains to be seen.
In the U.S., companies that get subsidy money for their fabs in the country cannot expand their fabs in certain countries, such as China and Russia. They also cannot team up with companies that might cause security concerns. If they do not follow these rules, they have to give back the subsidy money.
Japan is working hard to bring advanced logic production back to the country as well as improve its supercomputer prowess. As a result, the country's government is willing to subsidize semiconductor and other high-tech companies. Since tens of billions of dollars is at stake, the nation is getting more protective about its technological advancements.
