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Japan gives Kioxia and Western Digital $680m to boost chips

Funds aimed at stabilizing memory chip production amid global shortages

Kioxia, which was spun off from Toshiba, and Western Digital operate a joint flash memory chip plant in Yokkaichi in central Japan.   © Reuters

TOKYO (Reuters) -- Japan's government on Tuesday said it will provide as much as 92.9 billion yen ($680 million) to Kioxia Holdings and Western Digital Corp. to help them boost production and ensure a stable supply of memory chips in Japan.

The subsidy is part of a broader effort to revive chip production in Japan, as tensions between China and the United States and COVID-19 pandemic disruptions spur concern that Japanese companies such as automaker Toyota Motor could be hobbled by semiconductor shortages.

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