Micron To Invest $9.6 Billion In Western Japan Plant: Report
Micron will build the facility within the compound of its Hiroshima plant, starting in May, with plans to launch HBM shipments around 2028, the report said.
Micron Technology Inc. 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 Corp., 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 Corp.
Micron is competing in HBM against South Korea’s SK Hynix Inc. and Samsung Electronics Co. Demand for the chips has surged from tech firms like OpenAI and Meta Platforms Inc. as they focus on training and operating AI services.
