Japan Announces Subsidies To boost Optical Tech

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Optical signal transmission can largely increase the speed of transmission and decrease the power consumption. 

Japan’s industry ministry has announced around $307 million worth of subsidies to develop optical technology for use in semiconductor chips. This is seen as a significant boost to the country’s semiconductor industry.

Major Japanese tech firms will participate. The participating companies include include Nippon Telegraph and Telephone Corporation (NTT), Nippon Electric Company, Ltd.(NEC), Furukawa Electric, Shinko Electric and Kioxia in consultation with Intel. SK Hynix, which has recently returned to profit after four consecutive quarters of losses driven by demand for chips used in artificial intelligence, will also participate.

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SK Hynix, japan

Two major concerns in the semiconductor industry are speed and power consumption and that is what is being targeted here. Optical signal transmission can largely increase the speed of transmission and decrease the power consumption. 

The initiative is a part of Japan’s efforts to retain its edge in the chip industry and deepen partnerships with allied nations as China makes strides in advanced technologies. Last November, the Japanese Government announced setting aside $ 13 billion to boost its semiconductor industry and regain its former prominence.

“Hopefully (the technology) is a future game changer,” said Japan’s industry minister Ken Saito.

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