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HomeEconomyFinanceMicron breaks ground on $9.3bn Japan expansion to boost AI memory output

Micron breaks ground on $9.3bn Japan expansion to boost AI memory output

Investing.com — 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.


Source:

www.investing.com