U.S. semiconductor maker Micron Technology will invest 1.5 trillion yen (about $9.6 billion) to build a production base for next-generation memory chips, a key component in artificial intelligence computing, in western Japan, according to people familiar with the matter.
The new factory will focus on producing next-generation high-bandwidth memory (HBM) chips. HBM is the core component of AI chips and needs to be used in conjunction with graphics processing units (GPUs) produced by companies such as Nvidia. With high storage capacity and fast data transfer, its increased capacity directly speeds up the processing of generative AI systems.
Micron plans to start construction of a new factory at the Hiroshima Factory in Higashihiroshima City in May 2026, with the goal of achieving mass shipments of HBM chips around 2028. Japan’s Ministry of Economy, Trade and Industry (METI) will provide subsidies of up to 500 billion yen for the project.
In addition to the Hiroshima factory, Micron has major production bases in Taiwan and the United States, and the production of its advanced HBM chips is currently mainly concentrated in Taiwan.
In May this year, Micron introduced extreme ultraviolet lithography (EUV) systems - the most expensive manufacturing equipment required to produce advanced chips - in Japan for the first time in light of rising geopolitical risks, and deployed them at its Hiroshima factory to achieve mass production.
The new factory is the first new production site planned by Micron since 2019 and is expected to become one of the most advanced HBM chip production sites in the world. The move will help the U.S. company catch up with South Korea's SK Hynix, which is ahead of rivals in HBM technology.
The Japanese government is stepping up efforts to build a high-end chip supply chain and plans to provide more than 10 trillion yen in financial support for semiconductors and AI systems by fiscal 2030. So far, Japan has provided subsidies for the construction of factories by Taiwan Semiconductor Manufacturing Company (TSMC) and Japanese chipmaker Kioxia Holdings.
Considering that Micron has planned a cumulative investment of 2 trillion yen in the Hiroshima factory since 2023, Japan’s Ministry of Economy, Trade and Industry’s total subsidies to the company will be as high as 774.5 billion yen.
As the world's third largest manufacturer of dynamic random access memory (DRAM), Micron acquired Japanese chip company Elpida Memory in 2013 and took over the bankrupt company's production base in Higashihiroshima City.
According to Counterpoint data, in the second quarter of 2025 (April-June), SK Hynix dominated the global HBM chip market with a 64% market share, and Micron ranked second with a 21% share.