![The U.S. chipmaker aims to start construction at an existing site in May next year and begin shipments around 2028 [File] | Photo Credit: REUTERS](https://newspage360.com/wp-content/uploads/2025/12/2025-11-05T093843Z_2046702328_RC27QHA91GWC_RTRMADP_3_CHINA-TRADE-EXPO-1068x601.jpg "The U.S. chipmaker aims to start construction at an existing site in May next year and begin shipments around 2028 [File] | Photo Credit: REUTERS")
Micron’s $9.6 Billion AI Chip Plant in Japan
Micron Technology will invest 1.5 trillion yen ($9.6 billion) to construct a new high-bandwidth memory (HBM) chip plant in Hiroshima, Japan, according to a Nikkei report. The move aims to meet surging demand for AI hardware and diversify production away from Taiwan.
Key Project Details
- Investment: 1.5 trillion yen ($9.6 billion).
- Location: Hiroshima, western Japan.
- Product: Advanced high-bandwidth memory (HBM) chips for AI.
- Timeline: Construction starts May 2025, shipments begin around 2028.
- Subsidy: Up to 500 billion yen from Japan’s Ministry of Economy, Trade and Industry.
Japan’s Semiconductor Revival Push
Japan is offering substantial subsidies to attract foreign chipmakers like Micron and as part of a strategy to revive its aging semiconductor industry. The government is also funding a separate plant to mass-produce advanced logic chips using IBM technology.
Market Context
Demand for HBM chips is skyrocketing, driven by the rapid growth of artificial intelligence and data centre investments worldwide. The Hiroshima plant expansion will position Micron to better compete with market leader SK Hynix.
Note: Reuters could not immediately verify the Nikkei report.
