Micron Breaks Ground On $9.3 Billion Chip Plant Expansion In Japan

Micron Technology began construction Saturday on a major expansion of its factory in Hiroshima, Japan, a ¥1.5 trillion ($9.3 billion) project aimed at boosting production of advanced memory chips used in AI systems.

Expansion Targets AI Memory Demand

The Boise, Idaho-based chipmaker plans to use the facility to produce high-bandwidth memory, a key component in AI processors like those made by Nvidia, with shipments expected to begin around summer 2028. Japan’s Ministry of Economy, Trade and Industry is contributing up to ¥500 billion toward the project, part of roughly ¥775 billion in total support the government has committed to Micron so far.

Part Of A Broader Global Buildout

The Hiroshima expansion fits into Micron’s wider push to scale up production worldwide, including two advanced fabs under construction in Boise and a $100 billion facility near Syracuse, New York, which broke ground in January as part of the company’s plan to expand DRAM manufacturing in the US. Micron CEO Sanjay Mehrotra noted that the company’s first HBM production wafer was made in Hiroshima, calling the pairing of American and Japanese manufacturing strengths unmatched.

Japan Doubles Down On Chip Investment

Japan has directed tens of billions of dollars toward semiconductors and AI since 2021 as part of an effort to secure a stronger position in an industry viewed as critical to national security. Prime Minister Sanae Takaichi recently outlined a roadmap targeting ¥101.6 trillion in combined public and private investment in chips and AI through March 2041, though specifics on government funding were not disclosed.

A Long History In Hiroshima

Micron gained the Hiroshima site through its 2013 acquisition of Elpida Memory, a Japanese DRAM maker that had gone bankrupt. Company officials say the facility’s advantage lies in quickly delivering high-performance chips to customers, aided by the fact that about 80% of the materials it needs are sourced domestically in Japan.