Micron to Boost AI Memory Chip Production in Japan

Micron Technology plans a significant investment of 1.5 trillion yen (USD 9.6 billion) to construct a new facility in Hiroshima, western Japan. This plant will focus on producing advanced high-bandwidth memory, or HBM, chips.

Credit: Micron

The chipmaker aims to begin construction at an existing site in May and target shipments around 2028. Japan's Ministry of Economy, Trade and Industry will provide up to 500 billion yen for this project.

The Japanese government is offering generous subsidies to attract foreign chipmakers, including Micron and Taiwan Semiconductor Manufacturing Co., known as TSMC. This initiative aims to revitalise Japan's semiconductor industry.

Demand for HBM chips is increasing, driven by the growth of artificial intelligence and investment in data centres. The expansion in Hiroshima will help Micron diversify production away from Taiwan.

Credit: Micron

This move also positions Micron to better compete with market leader SK Hynix. Japan's government is also funding a plant to mass produce advanced logic chips using IBM technology.

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• Micron Technology plans to invest 1.5 trillion yen (USD 9.6 billion) in Hiroshima, Japan.

• The new facility will produce advanced high-bandwidth memory, or HBM, chips.

• Construction is set to begin in May, with shipments targeted around 2028.

Source: REUTERS