Micron Announces $9.6 Billion Investment in Japan AI Memory Chip Plant

Micron to invest $9.6 billion in Japan to build AI memory chip plant, Nikkei reports

Micron Technology will invest 1.5 trillion yen ($9.6 billion) to build a new plant in Hiroshima in western Japan to produce advanced high-bandwidth memory (HBM) chips, the Nikkei reported on Saturday, citing people familiar with the matter. The US chipmaker aims to start construction at an existing site in May next year and begin shipments around 2028, with Japan's Ministry of Economy, Trade and Industry providing up to 500 billion yen for the project, the Nikkei said. Reuters could not immediately verify the report. To revive its aging semiconductor industry, Japan's government is offering generous subsidies to lure investment from foreign chip makers such as Micron and Taiwan Semiconductor Manufacturing Co (TSMC). It is also funding the construction of a plant that will mass produce advanced logic chips using IBM technology. Demand for HBM chips is being driven by the growth of artificial intelligence and data centre investment. The expansion of its plant in Hiroshima will help Micron diversify production away from Taiwan and compete with market leader SK Hynix, the Nikkei said.

Micron to invest $9.6 billion in western Japan plant, report says

Micron Technology will spend ¥1.5 trillion ($9.6 billion) to build a plant in western Japan to make memory chips for artificial intelligence applications, Nikkei newspaper reported. The move comes as Micron looks to diversify advanced chip production outside of Taiwan, Nikkei said, citing people familiar with the matter. The new factory will manufacture high-bandwidth memory (HBM) chips, a key component for working with AI processors such as those made by Nvidia, according to the report. Micron will build the facility within the compound of its Hiroshima plant, starting in May, with plans to launch HBM shipments around 2028, Nikkei said. The Ministry of Economy, Trade and Industry will subsidize up to ¥500 billion of the costs for the project, the newspaper said. Japan has already set aside about ¥5.7 trillion in a plan initiated in 2021 to rebuild the nation's chipmaking prowess. The country is set to secure another ¥252.5 billion in an extra budget to further support AI and semiconductor development. The budget, which Prime Minister Sanae Takaichi's cabinet approved on Friday, is heading to parliament for votes. The government has awarded Micron's Hiroshima factory ¥774.5 billion and has also provided funds to other companies including global foundry giant Taiwan Semiconductor Manufacturing Co. and homegrown Rapidus. Micron is competing in HBM against South Korea's SK Hynix and Samsung Electronics. Demand for the chips has surged from tech firms like OpenAI and Meta Platforms as they focus on training and operating AI services.