Japan's government says it will provide up to 70 billion yen, or about 470 million dollars, for a joint project to boost domestic output of power semiconductors, an essential component of electric vehicles.

The financial support is equal to one-third of the capital investment by equipment manufacturer Fuji Electric and auto parts maker Denso to share power-chip production.

Japanese Industry Minister, Muto Yoji, said: "Demand for silicon carbide semiconductors is expected to grow with the spread of EVs. By combining production bases, Japan aims to secure supply capacity equivalent to that of US and European companies, which have large market shares."

The industry ministry last year announced an aid package for a similar project between electronics firm Toshiba and chip major Rohm.

The ministry also plans to provide up to 30 billion yen, or 200 million dollars, to seven domestic corporate investments.

They include chip material-related firm Mitsubishi Chemical and electronics-parts maker Murata Manufacturing.