Micron Technology secured subsidies of up to JPY192 billion ($1.3 billion) from the Japanese government to build a chip production facility in Hiroshima, with the US-based memory chipmaker committed to spending around JPY500 billion, Bloomberg reported.

The allocation will cover JPY167 billion in production expenses and JPY25 billion of development costs, with the company planning to produce advanced chips using ASML’s extreme ultraviolet lithography machinery, the news outlet wrote.

Backing Micron is part of a government effort to up domestic production and reduce reliance on supplies from China.

In April, Japan outlined plans to triple sales of semiconductors and follow European Union and US moves to boost chip production.

Micron Technology is investing CNY4.3 billion ($590.1 billion) in a chip factory in China to get round a ban on domestic operators of critical information infrastructure buying its wares.

It is also investing heavily in a chip assembly and test facility in India, with government backing of INR110 billion ($1.3 billion).