Micron Technology, the American memory chip giant, broke ground on a massive expansion project at its Hiroshima factory on July 4, investing 1.5 trillion JPY (about 9.3 billion USD) to ramp up production of cutting-edge artificial intelligence (AI) memory, Bloomberg reported.
According to the report, Micron plans to construct a new manufacturing facility at its existing Hiroshima plant to produce chips, including high-bandwidth memory (HBM) crucial for AI accelerators. The company aims to start shipments by summer 2028. Japan’s Ministry of Economy, Trade, and Industry has earmarked up to 500 billion JPY (about 3.1 billion USD) to support the construction costs.
This move is part of a broader effort to meet the surging demand for AI memory amid severe supply shortages. Micron is already building two state-of-the-art production facilities in Boise, Idaho. In January, the company also broke ground on a 100 billion USD plant near Syracuse, New York, to boost its U.S. dynamic random access memory (DRAM) production capacity.
Meanwhile, South Korean rivals SK Hynix and Samsung Electronics announced their own large-scale expansion plans in Korea late last month, aiming to increase their memory chip production capabilities.
Micron acquired the Hiroshima plant in 2013 when it purchased the bankrupt Japanese DRAM manufacturer Elpida Memory. While Japan still boasts several key players in advanced semiconductor materials and equipment, it has largely lost its edge in finished semiconductor production.
At the groundbreaking ceremony, Micron Chief Executive Officer (CEO) Sanjay Mehrotra stated that Micron’s first HBM wafers were produced right here in Hiroshima. When American boldness meets Japanese craftsmanship, there’s no compromise. This is where world-class products are born.
Japan’s Minister of Economy, Trade, and Industry, Ryosei Akazawa, emphasized the significance of supporting Micron, now the sole DRAM manufacturer in Japan. He added that if foreign semiconductor manufacturers want to set up factories in Japan, it’s ready to provide all possible support.
Japan is making concerted efforts to revitalize its semiconductor industry. Last month, Prime Minister Sanae Takaichi unveiled an ambitious roadmap targeting 101.6 trillion JPY (about 628 billion USD) in private and public investments for the semiconductor and AI sectors by March 2041.