Micron Invests $9.3bn in Hiroshima
Micron Technology breaks ground on $9.3bn Hiroshima expansion to meet AI memory demand, with Japan committing ¥775bn in support.
Key points
- Micron Technology, a Boise, Idaho-based chipmaker, is expanding its Hiroshima factory with a ¥1.5 trillion investment.
- The expansion will produce high-bandwidth memory for AI accelerators, with commercial shipments expected to start in summer 2028.
- Japan's Ministry of Economy, Trade and Industry is providing up to ¥500bn in capital costs and ¥775bn in total support, covering nearly half of the investment.
- Micron CEO Sanjay Mehrotra highlighted the site's significance, where the company's first HBM production wafer was made.
- The move is part of Micron's broader programme, including leading-edge plants in Boise and a $100bn manufacturing complex.
Micron Technology has begun construction on a significant expansion of its factory in Hiroshima, Japan. The $9.3bn investment aims to increase production of high-bandwidth memory, a crucial component for AI accelerators. This development is part of a larger trend, as companies like Micron bet on the growing demand for AI memory. The Japanese government has committed substantial support to the project, with ¥775bn in total backing, including ¥500bn towards capital costs. This subsidy package covers nearly half of the new investment. The expansion is expected to start commercial shipments in the summer of 2028, a significant timeline in an industry where high-bandwidth memory has become a key constraint on AI infrastructure. Micron's CEO, Sanjay Mehrotra, emphasized the importance of the Hiroshima site, where the company's first HBM production wafer was produced. This move is not isolated, as Micron is also investing in leading-edge plants in Boise and a $100bn manufacturing complex.
Sources
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