Micron to build AI chip plant in Japan for $9.6B
What's the story
Micron Technology, a leading US chipmaker, is planning a massive investment of 1.5 trillion yen ($9.6 billion) to set up a state-of-the-art memory chip manufacturing facility in Hiroshima, western Japan. The new plant will produce advanced high-bandwidth memory (HBM) chips to support artificial intelligence computing. Construction is expected to begin at an existing site in May next year and shipments are likely to start by 2028.
Government backing
Japan's government supports Micron's chip factory
The Japanese Ministry of Economy, Trade and Industry is providing up to 500 billion yen for the project. This comes as part of Japan's efforts to revive its aging semiconductor industry by attracting investment from foreign chipmakers. The country is also building a plant that will mass-produce advanced logic chips using IBM technology.
Strategic move
Micron's expansion to diversify production
The expansion of Micron's plant in Hiroshima will help the company diversify its production beyond Taiwan. This strategic move is aimed at competing with market leader SK Hynix. The demand for HBM chips is being driven by the growth of AI and data center investment, making this new facility even more critical in today's tech landscape.