Micron Breaks Ground on $9bn Hiroshima Expansion for AI Memory
Micron Technology broke ground on Saturday on a ¥1.5 trillion (approximately $9.3 billion) expansion of its factory in Hiroshima, Japan—a strategic move to capitalize on the booming demand for AI memory. This is the company’s latest investment as it aims to keep up with the rapid growth of artificial intelligence infrastructure, where high-bandwidth memory (HBM) is a critical component.
The Project Details
The expansion will produce high-bandwidth memory at a site that previously manufactured Micron’s first HBM wafer. Commercial shipments are expected to commence in the summer of 2028. This initiative is part of a broader program by Micron to increase DRAM capacity, given the current supply shortage.
Government Support
The Japanese government has played a significant role in this project, committing up to ¥500 billion towards the capital costs, as reported by Bloomberg. This support totals roughly ¥775 billion when research and development funding is added, covering approximately half of the new investment. The prime minister’s roadmap aims to invest ¥101.6 trillion in semiconductors and AI through 2041, demonstrating Tokyo’s commitment to rebuilding its domestic chipmaking industry.
Historical Context
The Hiroshima project carries historical weight as Japan once dominated global memory production during the 1980s and 1990s before Samsung and SK Hynix took over. This expansion is Tokyo’s attempt to regain some of that prominence in the semiconductor industry, hosting a foreign company’s factory as part of its strategy.
Micron’s Global Plans
Micron’s investment in Hiroshima is not an isolated move. It complements their other advanced facilities in Boise and Syracuse, New York, all geared towards boosting DRAM production to meet surging demand. The company’s recent results indicate that they can fulfill only a fraction of HBM customer orders, highlighting the urgency behind this expansion.