The American company Micron Technology will invest 1.5 trillion yen (about $9.6 billion) to build a new plant in western Japan. The facility will specialize in manufacturing high-bandwidth memory (HBM) chips, which are a key component for specialized AI accelerators used by companies such as Nvidia.

Construction will begin in May 2026 on the grounds of Micron’s existing plant in Hiroshima. Shipments of HBM chips from the new site are expected in 2028.

Micron’s project holds strategic importance for Japan, which is seeking to revive its semiconductor industry. Japan’s Ministry of Economy, Trade and Industry (METI) plans to subsidize the construction with up to 500 billion yen ($3.2 billion). Earlier, authorities had already approved 774.5 billion yen to expand Micron’s operations in Hiroshima.

According to Nikkei, Micron aims to diversify production of advanced chips beyond Taiwan to reduce geopolitical risks.

Demand for HBM chips has surged amid the rapid development of artificial intelligence. Micro­n competes in this market with industry leaders SK hynix and Samsung Electronics.

Since 2021, Japan has allocated about $36.5 billion to develop its semiconductor sector. The new Micron plant, together with TSMC and Rapidus projects, forms part of Tokyo’s large-scale strategy to strengthen technological security and leadership in next-generation chip production.

ORIENT