Micron Technology breaks ground on $9.3 billion Hiroshima plant expansion for AI memory chips

Micron breaks ground on $9 billion western Japan plant expansion

Micron Technology on Saturday broke ground on the expansion of its factory in western Japan, a ¥1.5 trillion ($9.3 billion) undertaking to produce advanced memory chips. The Boise, Idaho-based company is building the facility in Hiroshima to make chips such as high-bandwidth memory crucial for AI processors like Nvidia's, with shipments to start around the summer of 2028. Japan's Ministry of Economy, Trade and Industry has allocated up to ¥500 billion to help cover the cost. The move is part of a global rampup by the U.S. company to meet demand for AI. Micron is building two leading-edge fabs in Boise and in January held a groundbreaking ceremony for a $100 billion production site outside Syracuse, New York, part of a pledge to increase DRAM production on American soil. "Micron's very first HBM production wafer -- for the memory technology at the heart of AI -- was made right here in Hiroshima," Micron CEO Sanjay Mehrotra said during a ceremony attended by central and local government officials. "When American boldness meets Japanese craftsmanship, you do not get a compromise. You get the best in the world." The factory expansion in Japan will help Micron raise power and transmission efficiency in chips needed for AI services and self-driving vehicles. Along with funds to support research and development, the Japanese government has earmarked roughly ¥775 billion for the U.S. company to date. Since 2021, the Asian country has set aside tens of billions of dollars of support for semiconductors and AI, seeking to gain leadership in a sector seen as central for national security. Last month, Prime Minister Sanae Takaichi released a roadmap targeting private and public investment into chips and AI to the tune of ¥101.6 trillion through March 2041, without giving a breakdown on how much would come from government coffers. "The Hiroshima factory's strength lies in its ability to quickly deliver cutting-edge and high-performance products to customers," said Kota Nosaka, representative director of Micron's Japan unit. "Creating next-generation chips here is directly tied to Micron's strategy." Micron took possession of the Hiroshima factory when it acquired bankrupt Japanese DRAM maker Elpida Memory Inc. in 2013. Japan is home to many corporate linchpins in advanced chip materials and gear, but it's largely ceded leadership in finished semiconductors. Roughly 80% of chip materials the Hiroshima factory needs now comes from Japan, Nosaka said.

Micron breaks ground on $9.3bn Japan expansion to boost AI memory output By Investing.com

Investing.com -- Micron Technology has broken ground on a ¥1.5 trillion ($9.3 billion) expansion of its semiconductor facility in Hiroshima, Japan, as the U.S. memory chipmaker ramps up production to meet growing demand for artificial intelligence applications, Bloomberg reported. The expanded facility will manufacture advanced memory products, including high-bandwidth memory (HBM) chips used in AI processors such as those developed by Nvidia. Commercial shipments are expected to begin around the summer of 2028. Japan's Ministry of Economy, Trade and Industry has committed up to ¥500 billion toward the project. Including research and development support, government backing for Micron's operations in Japan now totals about ¥775 billion. The investment forms part of Micron's broader global expansion strategy. The company is also building leading-edge semiconductor plants in Boise, Idaho, and a $100 billion manufacturing complex near Syracuse, New York, to increase DRAM production capacity. Demand for advanced memory chips has surged as technology companies accelerate investments in AI infrastructure. Industry rivals SK Hynix and Samsung Electronics are also expanding production to capitalize on the growing market for AI memory. Speaking at the groundbreaking ceremony, Chief Executive Sanjay Mehrotra said Micron's first HBM production wafer was manufactured in Hiroshima, adding that the new facility will strengthen the company's ability to deliver next-generation memory products. Japan has made semiconductor manufacturing a strategic priority, committing tens of billions of dollars in support since 2021 as it seeks to rebuild its domestic chip industry and strengthen supply chain resilience. Last month, Prime Minister Sanae Takaichi unveiled a long-term roadmap targeting ¥101.6 trillion in combined public and private investment in semiconductors and AI through 2041.