Micron breaks ground on $9B Japan plant expansion for HBM chip production

Micron Technology Inc broke ground on Saturday on the expansion of its factory in Hiroshima, western Japan, a ¥1.5 trillion (US$9.3 billion) undertaking to produce advanced memory chips. The Boise, Idaho-based company is building the facility to manufacture high-bandwidth memory crucial for AI processors like Nvidia Corp's, with shipments expected to begin around summer 2028.

Japan's economy, trade and industry ministry has allocated up to ¥500 billion to help cover the costs. The expansion is part of a broader global effort by memory manufacturers to meet surging demand for AI-related semiconductors.

Micron is simultaneously developing two leading-edge fabrication plants in Boise and broke ground in January on a US$100 billion production site outside Syracuse, New York, as part of a commitment to increase domestic DRAM production. South Korea's SK Hynix Inc and Samsung Electronics Co are also expanding their manufacturing capacity.

CEO Sanjay Mehrotra highlighted the facility's significance during the ceremony, attended by central and local government officials. "Micron's very first HBM production wafer—for the memory technology at the heart of AI—was made right here in Hiroshima," he said. "When American boldness meets Japanese craftsmanship, you do not get a compromise. You get the best in the world."

The Hiroshima expansion will improve power and transmission efficiency in chips required for AI services and autonomous vehicles. To date, the Japanese government has earmarked roughly ¥775 billion for Micron, including research and development support.

Ryosei Akazawa, Japan's economy, industry and trade minister, emphasized Micron's importance as the country's only domestic DRAM manufacturer. "Should other overseas chipmakers seek to build factories in Japan, the country is ready to do all that it can to help," he said.

Since 2021, Japan has committed tens of billions of dollars to semiconductor and AI initiatives to secure leadership in a sector viewed as critical for national security. Last month, Prime Minister Sanae Takaichi released a roadmap targeting ¥101.6 trillion in combined private and public investment into chips and AI through March 2041, without specifying the government's share.

Kota Nosaka, representative director of Micron's Japan unit, noted that "the Hiroshima factory's strength lies in its ability to quickly deliver cutting-edge and high-performance products to customers," adding that "creating next-generation chips here is directly tied to Micron's strategy."

Micron acquired the Hiroshima facility in 2013 when it purchased bankrupt Japanese DRAM maker Elpida Memory Inc. While Japan hosts many corporate leaders in advanced chip materials and equipment, it has largely ceded dominance in finished semiconductor production. Approximately 80 percent of the chip materials the Hiroshima facility requires now originates from Japan.