Micron to Expand Hiroshima Factory for AI Chip Production

Micron Technology officially broke ground today on a major expansion of its manufacturing facility in Hiroshima, Japan. The project involves an investment of approximately 1.5 trillion yen (around $10 billion USD) and is designed to establish a dedicated production line for next-generation advanced memory chips. The investment is driven by the significant surge in demand for memory solutions within the artificial intelligence (AI) sector.

The new production capabilities will focus on manufacturing critical components such as High Bandwidth Memory (HBM) chips, which are essential for AI processors used by companies like Nvidia. Micron anticipates that the new production line will be operational and begin supplying products by summer 2028. Micron CEO Sanjay Mehrotra stated at the groundbreaking ceremony that the first HBM wafer produced by Micron originated in Hiroshima.

The Japanese government is providing substantial support for the expansion, contributing up to 500 billion yen (around $3.3 billion USD) through subsidies. Japanese Minister of Economy, Trade and Industry, Ryōta Takeda, attended the ceremony and highlighted Micron's importance as the sole DRAM manufacturer in Japan. He also indicated the government's willingness to support other foreign chipmakers looking to establish operations in the country.

Micron's presence in Hiroshima dates back to 2013 when it acquired the now-bankrupt Japanese DRAM manufacturer Elpida Memory. The Hiroshima facility currently sources approximately 80 percent of its chip materials from domestic Japanese suppliers. This expansion in Japan is part of Micron's broader global strategy to increase its manufacturing capacity, which also includes significant investments in sites within the United States.