en.Wedoany.com Reported - Micron Technology has secured large-scale subsidies from the Japanese government and has abruptly commenced construction of a new manufacturing facility for next-generation high-bandwidth memory at its plant in Hiroshima Prefecture, in response to surging demand for artificial intelligence computing.
Micron has invested a total of 1.5 trillion yen (approximately $9.3 billion) in its plant in Higashihiroshima City, Hiroshima Prefecture, Japan, to launch an expansion project for advanced memory semiconductor production lines. The newly constructed facility will phase in mass production of the next-generation high-bandwidth memory (HBM) HBM4E, required for Nvidia's AI processors, as well as DRAM product lines based on fine process technology. To ensure a stable supply of manufacturing infrastructure, Japan's Ministry of Economy, Trade and Industry has confirmed subsidies of up to 536 billion yen, accounting for one-third of the total investment. Equipment installation and production line startup at the plant will gradually commence from the second half of 2028.
The acquisition of the new production base coincides with a global memory camp equipment investment race to seize dominance in artificial intelligence. Micron is currently investing $50 billion to build a large-scale wafer fab in Boise, Idaho, USA, and is accelerating a $100 billion mega-wafer fab project in Clay, New York, targeting a 2030 production start. SK Hynix and Samsung Electronics are also aggressively expanding high-performance memory capacity.
Against a backdrop of supply chain risks, Micron's choice to add a base in Japan stems from the high self-sufficiency rate of the local component ecosystem. According to Micron's Japanese subsidiary, approximately 80% of the major semiconductor materials and equipment required for the Hiroshima wafer fab are sourced from local Japanese partners, minimizing uncertainties in overseas equipment procurement. Additionally, the Japanese government's designation of semiconductors as a core asset for economic security and the establishment of a comprehensive financial support barrier have also contributed to Micron's decision. Since 2021, the Japanese government has invested tens of trillions of won to revitalize the semiconductor and AI industries, allocating a cumulative total of 775 billion yen in subsidies to Micron alone as of now. Last month, Japanese Prime Minister Sanae Takaichi announced a long-term roadmap for official-private cooperation totaling 101.6 trillion yen in the semiconductor and AI sectors by March 2041, signaling a willingness to build a complete semiconductor supply chain within Japan.
Micron CEO Sanjay Mehrotra emphasized at the groundbreaking ceremony that Micron's first HBM wafer was produced in Hiroshima, which is the core of AI technology. Japan's Minister of Economy, Trade and Industry, Ryosei Akazawa, commented that the proliferation of generative AI has led to a sharp expansion in demand for memory semiconductors, and that Micron is the only DRAM manufacturer on Japanese soil. The expansion of its production base is extremely valuable for consolidating the domestic manufacturing base and building a globally stable supply system.
