Micron expands Hiroshima HBM production facility to challenge SK Hynix and Samsung capacity dominance.

U.S. memory semiconductor company Micron Technology has begun expanding production facilities for next-generation artificial intelligence memory at its Hiroshima plant in Japan. As demand for high-bandwidth memory (HBM) in AI servers accelerates, Micron is intensifying its pursuit of the HBM market, which has been dominated by SK Hynix and Samsung Electronics.

According to the Nikkei Shimbun, Micron held a groundbreaking ceremony for a new manufacturing building at its plant in Higashihiroshima City, Hiroshima Prefecture. The total investment amounts to 1.5 trillion Japanese yen (approximately 14 trillion Korean won), with Japan's Ministry of Economy, Trade and Industry committing up to 536 billion Japanese yen in support.

Micron acquired the Hiroshima plant in 2013 through the bankruptcy proceedings of Japanese DRAM manufacturer Elpida Memory. The facility is now one of Micron's key production bases for DRAM and HBM. The new manufacturing building will focus on producing next-generation DRAM processes for AI computing and advanced products including HBM4E.

Manishi Bhatia, Micron's senior vice president, stated, "We are considering production of the 1γ (gamma) process, the most advanced DRAM." Next-generation DRAM, the 1δ (delta) process, and HBM4E—the successor to HBM4—are also included in production targets. The HBM4 series features wider data channels than HBM3E, enabling AI semiconductors to process more data at faster speeds.

Micron plans to introduce manufacturing equipment to the new facility from the second half of 2028 and gradually expand production capacity. The expansion supports Micron's strategy to increase output amid a global memory supply shortage. Sanjay Mehrotra, Micron's chief executive officer, attended the groundbreaking ceremony and emphasized: "Memory demand is increasing like never before."

Micron's expansion is expected to intensify competition in the HBM market, where SK Hynix currently leads, with Samsung Electronics and Micron pursuing. As Micron secures production infrastructure for post-HBM4E generations, competition among the three memory giants for the next-generation HBM market after 2028 is expected to accelerate.

Japan's government, aiming to rebuild its semiconductor supply chain, has high expectations for the investment. While Japan maintains competitiveness in semiconductor materials and equipment, it has lost its historical dominance in finished semiconductor manufacturing. The government is therefore channeling substantial support into attracting TSMC's factory to Kumamoto and fostering Rapidus' next-generation 2-nanometer process development. With Micron's investment in advanced DRAM and HBM, visible progress in supply chain rebuilding is anticipated.

Ryosei Akazawa, Japan's Minister of Economy, Trade and Industry, stated: "Memory demand is expanding due to generative AI. It is highly significant for our country to produce and contribute to the world." Hiroshima Prefecture also expects the investment to strengthen the local supply chain and create more than 1,000 jobs.