U.S. Chip Project Significant for Japan-U.S. AI Edge: Akazawa

Tokyo, Oct. 15 (Jiji Press)--Japanese Economy, Trade and Industry Minister Ryosei Akazawa on Thursday praised the U.S. semiconductor plant project selected for the third round of Japanese funding in the United States under the two countries' tariff agreement.

The project "holds great significance for Japan and the United States to work together to secure a competitive advantage in the age of artificial intelligence," Akazawa told a press conference.

In the agreement concluded last year, Japan pledged to provide the United States with 550 billion dollars in investment and loans in exchange for U.S. tariff cuts for imports from the Asian country.

Under the project, led by U.S. semiconductor contract manufacturer GlobalFoundries Inc., two new plants are set to be built in the state of New York with funding of up to 21 billion dollars.

Japan will provide investment, loans and loan guarantees through government-affiliated financial institutions for the construction of the first plant, which involves some 10 billion dollars in investment. The construction work is slated to begin this year.

[Copyright The Jiji Press, Ltd.]