Japan will provide a subsidy of up to ¥92.9 billion ($680 million) to Kioxia Corp. and Western Digital Corp. for a semiconductor production facility as part of efforts to secure stable domestic chip production, the industry minister said Tuesday.

Economy, Trade and Industry Minister Koichi Hagiuda said the government had approved the capital investment plan to enhance the capacity of the facility, which is a joint venture by Kioxia with the U.S. chip giant.

"The plan will contribute to developing a resilient chip supply chain, making progress in the semiconductor industry as well as strengthening Japan-U.S. cooperation," Hagiuda said, referring to the facility in Yokkaichi, Mie Prefecture.