Micron Commits $9.6 Billion To Build AI Memory Chip Plant In Japan

Updated: November 29, 2025 16:45

Image Source : The New York Times

Micron Technology will invest 1.5 trillion yen ($9.6 billion) to establish a next-generation memory chip plant in Hiroshima, Japan. The facility will produce advanced high-bandwidth memory (HBM) chips crucial for artificial intelligence applications, with construction beginning in 2026 and shipments expected by 2028, supported by Japanese government subsidies.

Micron Technology, one of the world’s leading semiconductor manufacturers, has announced a landmark investment in Japan to strengthen global supply chains and meet surging demand for AI-driven computing. According to Nikkei, the U.S. chipmaker will spend 1.5 trillion yen ($9.6 billion) to build a cutting-edge memory chip plant in Hiroshima, focusing on high-bandwidth memory (HBM) production. These chips are essential for powering AI processors, including those developed by Nvidia and other industry leaders.

Key highlights from the announcement include

Micron’s investment totals 1.5 trillion yen ($9.6 billion), marking one of its largest commitments in Asia.
The new plant will manufacture advanced HBM chips, designed to support AI workloads and data-intensive applications.
Construction is expected to begin in 2026 at Micron’s existing Hiroshima site, with shipments targeted for 2028.
Japan’s Ministry of Economy, Trade and Industry (METI) will provide subsidies of up to 500 billion yen to support the project.
The move aligns with Japan’s broader strategy to revive its semiconductor industry and attract foreign investment.
Micron’s expansion complements similar efforts by Taiwan Semiconductor Manufacturing Co. (TSMC) and other global players in Japan.
The investment underscores the growing importance of AI-focused infrastructure and the need for secure, diversified chip supply chains.
Analysts note that HBM chips are critical for training large AI models, making Micron’s plant strategically significant.

This development highlights Japan’s ambition to reclaim its position in the global semiconductor landscape while ensuring resilience against supply chain disruptions. For Micron, the Hiroshima plant represents a pivotal step in scaling AI memory production, reinforcing its role as a key supplier in the rapidly evolving digital economy.

Sources: Nikkei Asia, Reuters, US News, The Edge Singapore

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