VP Harris seeks computer chip partners in Tokyo

TOKYO (AP) — Armed with a new law that boosts U.S. support for computer chip manufacturing, Vice President Kamala Harris is seeking new investments and partnerships as she sits down with Japanese technology executives.

Harris was meeting with the CEOs on her last full day in Tokyo on Wednesday, a reflection of the administration’s focus on boosting semiconductor manufacturing and expanding the supply chain for critical materials.

With China investing in computer chips of its own, the U.S. is working to solidify its technology relationships with South Korea, Taiwan and Japan.

Legislation signed by President Joe Biden, known as the CHIPS and Science Act, includes $52 billion for grants and incentives for semiconductor companies, plus a 25% tax credit when they invest in U.S. facilities. There’s also about $200 billion over the next decade to support research programs.

Jimmy Goodrich, vice president for global policy at the Semiconductor Industry Association, said “there’s no one country or company that can do everything on its own.”

When it comes to Japan, he said, “there’s a big opportunity and significant space for future investment.”

Although Japan was once a world leader in computer chip manufacturing, its status has eroded over the last two decades, and the country is increasingly worried about falling behind.

Much like the United States has done, Japan has set up its own fund to support semiconductor production. Out of $4.3 billion, $3.3 billion is being provided in subsidies for a new factory in Kumamoto, in the country’s southwest.

The facility is slated to begin production by the end of 2024, and it’s a partnership between the Taiwan Semiconductor Manufacturing Co., Sony Group and Denso.

The companies participating in the meeting with Harris include Tokyo...