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US Semiconductor Giant Begins $9.3-Billion Chip Plant Expansion in Japan

Micron said the project will boost high-bandwidth memory output for AI chips, with shipments from the expanded plant expected in 2028.

  • On Saturday, Micron Technology broke ground on a $9.3 billion expansion of its factory in Hiroshima, Japan, to produce advanced memory chips for the surging AI infrastructure market.
  • Micron is building the facility to manufacture high-bandwidth memory crucial for Nvidia AI processors, as the company is one of only three global manufacturers capable of producing this technology at scale.
  • The Japanese government has committed up to 500 billion toward capital costs, part of roughly 775 billion in total support for Micron, while roughly 80% of chip materials the Hiroshima factory needs comes from Japan.
  • Commercial shipments from the expanded facility are expected to begin around the summer of 2028; Micron currently fulfills only between half and two-thirds of customer orders for high-bandwidth memory due to ongoing shortages.
  • Prime Minister Sanae Takaichi recently released a roadmap targeting 101.6 trillion in investment for chips and AI through March 2041, reflecting Japan's broader industrial strategy to regain semiconductor leadership.
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