Micron Japan launches over $9 billion chip plant expansion, betting on AI high-bandwidth memory demand

Odaily reported that Micron officially broke ground on its factory expansion project in Higashihiroshima City, Hiroshima Prefecture, Japan, on Saturday. The project involves a total investment of approximately 1.5 trillion yen (around $9.3 billion) and aims to produce advanced memory chips for the AI era.

According to reports, the new production line will focus on manufacturing key chips such as high-bandwidth memory (HBM), which are core components supporting the performance of AI processors like Nvidia's. The relevant chips are expected to begin shipment as early as the summer of 2028.

Japan's Ministry of Economy, Trade and Industry has provided up to 500 billion yen in subsidies to support the project, aiming to strengthen the country's domestic semiconductor manufacturing capabilities and enhance supply chain resilience.

This expansion project is regarded as a significant step for Japan in strengthening its semiconductor manufacturing layout amid the global AI chip competition. (Bloomberg)