Micron Technology Inc. is expected to get about $1.5 billion in financial incentives from the Japanese government to help build advanced memory chips, according to a new report.
Bloomberg News reported late Wednesday that the deal is likely to be announced Thursday, when Japanese Prime Minister Fumio Kishida meets with a group of tech executives including Micron Chief Executive Sanjay Mehrotra.
Boise, Idaho-based Micron
would use the funds to upgrade its facility in Hiroshima, Japan, to fabricate next-generation DRAM chips, Bloomberg reported.
Bloomberg said the effort is intended to boost Japan’s domestic semiconductor industry amid rising tensions between the U.S. and China, and that it seeks a backup plan in case chip production in Taiwan is disrupted.
Micron has invested more than $13 billion in Japan since 2013, according to Bloomberg.
Micron shares have surged 30% year to date, but are still down 8.6% over the past 12 months.
This story originally appeared on Marketwatch