Quick overview

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Micron on Saturday broke ground on the expansion of its factory in western Japan, a ¥1.5 trillion ($9.3 billion) undertaking to produce advanced memory chips.

Idaho-based company is constructing a facility in Hiroshima to produce chips like high-bandwidth memory, with shipments expected to begin in the summer of 2028, the Boise, which are essential for AI processors like those from Nvidia.  Up to ¥500 billion has been set aside by Japan’s Ministry of Economy, Trade, and Industry for the expenses.

The action is a part of the US company’s global expansion to meet the demand for AI. As part of a commitment to boost DRAM production on American soil, Micron is constructing two state-of-the-art facilities in Boise and held a groundbreaking ceremony for a $100 billion production site outside of Syracuse, New York, in January.

“Micron’s very first HBM production wafer — for the memory technology at the heart of AI  was made right here in Hiroshima,” stated Sanjay Mehrotra, CEO of Micron, at a ceremony that was attended by national and local governments.

There is no compromise when Japanese craftsmanship and American audacity come together.

The Japanese factory expansion will help Micron increase the power and transmission efficiency of chips required for AI services and self-driving cars. The stock settled at $975 per share. To date, the Japanese government has set aside about ¥775 billion for the US company in addition to funds for research and development.