Micron breaks ground on $9.3 billion Hiroshima factory expansion

Micron Technology on Saturday broke ground on the expansion of its factory in western Japan. The project is valued at ¥1.5 trillion ($9.3 billion) and will produce advanced memory chips. The Boise, Idaho-based company is building the facility in Hiroshima to make chips such as high-bandwidth memory used in AI processors. Shipments are scheduled to start around the summer of 2028.

Government support and production plans Japan’s Ministry of Economy, Trade and Industry has allocated up to ¥500 billion to help cover the cost. The company has received roughly ¥775 billion in total support from the Japanese government since 2021, including funds for research and development.

The expansion is part of Micron’s global increase in production to meet demand for AI. The company is building two leading-edge fabs in Boise and held a groundbreaking ceremony in January for a $100 billion production site outside Syracuse, New York.

Statements from company executives "Micron’s very first HBM production wafer — for the memory technology at the heart of AI — was made right here in Hiroshima," the company’s CEO said during a ceremony attended by central and local government officials.

"When American boldness meets Japanese craftsmanship, you do not get a compromise. " The factory expansion will help raise power and transmission efficiency in chips needed for AI services and self-driving vehicles. Roughly 80 percent of the chip materials the Hiroshima factory needs now comes from Japan.

Micron acquired the Hiroshima factory when it took over bankrupt Japanese DRAM maker Elpida Memory Inc. in 2013. Japan has set aside tens of billions of dollars in support for semiconductors and AI since 2021.