Micron to Invest $9-B in Japan to Build AI Memory Chip Plant

Micron Technology will invest 1.5 trillion yen ($9.6 billion) to build a new plant in Hiroshima, western Japan, to produce advanced high-bandwidth memory (HBM) chips, the Nikkei reported, citing people familiar with the matter, Rajveer Singh Pardesi and Tim Kelly reported for Reuters.

Japan has been offering generous subsidies to revive its aging semiconductor industry and attract foreign chipmakers such as Micron and TSMC. (Photo: Micron Technology)

The U.S. chipmaker aims to begin construction at an existing site in May next year and start shipments around 2028. Japan’s Ministry of Economy, Trade and Industry will provide up to 500 billion yen in support, the Nikkei said.

Japan has been offering generous subsidies to revive its aging semiconductor industry and attract foreign chipmakers 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 surging due to the rapid growth of artificial intelligence (AI) and data center investment.

The expansion of Micron’s Hiroshima facility will help the company diversify production away from Taiwan and compete more effectively with market leader SK Hynix, the Nikkei said.