Micron plans $9.6bn HBM chip facility at Hiroshima site in Japan

Core Insights - Micron Technology plans to invest approximately Y1.5 trillion ($9.6 billion) to establish a new facility in western Japan for high-bandwidth memory (HBM) chip production [1][2] - The Japanese Ministry of Economy, Trade and Industry (METI) will provide subsidies up to Y500 billion for this venture [2] - The new facility aims to enhance domestic supply of AI-related semiconductors in Japan amid global shortages [4] Investment and Expansion - Construction of the new factory is scheduled to begin in May 2026, with shipments targeted for 2028 [1] - This project marks Micron's first major expansion since 2019 [4] - Micron is also investing S$9.6 billion ($7.4 billion) in Singapore to meet the growing demand for advanced memory chips driven by AI [5] Technological Advancements - The facility will produce next-generation HBM chips, which are crucial for AI systems and work with GPUs from companies like Nvidia [2] - Micron introduced an extreme ultraviolet lithography (EUV) system at its Hiroshima site, marking a significant technological advancement in mass chip production in Japan [3] Current Operations - Micron currently operates major facilities in Taiwan and the US, with advanced HBM chip production primarily concentrated in Taiwan [3] - The company is the third-largest global producer of dynamic random access memory (DRAM) chips [4]