Micron Commits $10 Billion to Hiroshima as Memory Makers Ramp Up AI Chip Capacity

Micron Breaks Ground on Hiroshima Expansion

1.5 Trillion-Yen Project to Add HBM and Other AI Memory Output

Micron Technology is expanding its Hiroshima plant in Japan as surging demand for advanced memory, including high-bandwidth memory, or HBM, drives the company to strengthen supply for artificial intelligence accelerators.

Bloomberg reported on July 4 that Micron held a groundbreaking ceremony for the expansion at its Hiroshima facility that day. The project is valued at 1.5 trillion yen, or about $10 billion. Micron plans to build a new manufacturing building at the existing site and produce chips for AI memory products including HBM. Shipments are set to begin around the summer of 2028.

The Japanese government is also offering substantial support. The Ministry of Economy, Trade and Industry has allocated as much as 500 billion yen to help cover construction costs for the Hiroshima plant. The move underscores Japan's effort to secure an advanced memory production base through Micron, the only DRAM manufacturer in the country.

The investment comes as shortages of AI memory continue. Since generative AI took off, demand for AI accelerators has surged, making access to high-performance memory such as HBM a central issue for the global semiconductor industry. Micron is also speeding up plans to expand production in the US.

The company is building two leading-edge production facilities in Boise, Idaho. In January, it also held a groundbreaking ceremony for a $100 billion production complex outside Syracuse, New York, to increase DRAM output in the US. That would expand Micron's advanced memory capacity in both the US and Japan.

Competitors are also expanding. Samsung Electronics and SK Hynix announced large domestic expansion plans in late June. With AI memory demand continuing to outstrip supply, global memory manufacturers are increasing production capacity.

The Hiroshima plant is a landmark site for Micron's business in Japan. The company acquired the facility when it bought bankrupt Japanese DRAM maker Elpida Memory in 2013. While Japan remains home to many key makers of advanced semiconductor materials and equipment, it has lost much of its leadership in finished chips.

Chief Executive Officer Sanjay Mehrotra stressed the importance of the Hiroshima plant at the ceremony. "Micron's first wafer for HBM was made right here in Hiroshima," he said. "When American boldness meets Japanese craftsmanship, there is no compromise. You get world-class products."

The Japanese government also signaled a strong commitment to attracting overseas chipmakers. Ryosei Akazawa, Japan's minister of economy, trade and industry, called Japan's support for Micron of "tremendous value." He added that if foreign semiconductor manufacturers want to build plants in Japan, the country is prepared to support them by "doing everything it can."

Japan is making a semiconductor revival a national strategy. Prime Minister Sanae Takaichi last month unveiled a roadmap to mobilize 101.6 trillion yen in public and private investment in semiconductors and AI by March 2041. Micron's Hiroshima investment aligns with that broader effort to rebuild the country's chip industry.

Kim Dae-young, Hankyung.com reporter kdy@hankyung.com