What Happened
Micron Technology has officially announced plans to invest approximately $9.6 billion (1.5 trillion yen) to construct a new state-of-the-art memory chip manufacturing facility in Hiroshima, Japan. The new plant will focus specifically on producing next-generation Dynamic Random Access Memory (DRAM) chips, which are critical for powering the massive data centers driving the AI revolution.
The facility will be built near Micron’s existing Hiroshima plant, creating a massive semiconductor campus in the region. Construction is expected to begin in early 2026, with mass production slated to start by the end of 2027.
Key Details
- Investment Size: $9.6 Billion (1.5 Trillion Yen)
- Location: Higashi-Hiroshima, Japan (adjacent to existing plant)
- Product Focus: Advanced DRAM for AI and Data Centers
- Timeline: Construction starts 2026; Production starts late 2027
- Government Support: The Japanese government is expected to provide subsidies covering up to one-third of the investment cost.
Why It Matters
For the Industry
This is a strategic move to diversify the global semiconductor supply chain. By expanding in Japan, Micron reduces reliance on other geopolitical hotspots and strengthens the “chip alliance” between the US and Japan. It also positions Micron to better compete with Samsung and SK Hynix in the high-bandwidth memory (HBM) market, which is currently exploding due to demand from Nvidia and Google.
For Investors
This massive capital expenditure signals Micron’s long-term bullishness on AI. While it’s a huge upfront cost, the subsidies from the Japanese government significantly de-risk the project. It reinforces Micron’s position as a critical infrastructure player in the AI economy.
The Backstory
Japan has been aggressively trying to reclaim its status as a semiconductor powerhouse. In the 1980s, Japan dominated the memory market, but lost ground to South Korea and Taiwan. Under Prime Minister Kishida and his successors, the country has rolled out billions in subsidies to attract TSMC, Micron, and other global giants.
For Micron, the Hiroshima site has long been a jewel in its manufacturing crown, often being the first to deploy new process nodes. This expansion doubles down on that success.
Expert Reactions
Rahm Emanuel (US Ambassador to Japan) noted earlier this year: “This investment is about more than just chips; it’s about securing the digital future of our two democracies.”
Industry Analysts at TrendForce: “Micron’s expansion in Japan is a direct response to the insatiable demand for HBM and DDR5 memory caused by the generative AI boom. Capacity is king right now.”
What’s Next
Expect to see more announcements regarding Japanese government subsidies in the coming months to finalize the deal. We also anticipate Micron to begin hiring thousands of engineers in the Hiroshima region as they ramp up for the 2026 construction start.
Timeline:
- Early 2026: Groundbreaking and construction begins
- 2027: Equipment installation and testing
- Late 2027: Mass production of next-gen DRAM begins
The Bottom Line
Micron’s $9.6 billion bet on Japan is proof that the “AI Gold Rush” is still in its infrastructure phase. Building the brains (GPUs) is important, but they are useless without the memory to feed them. With this plant, Micron is ensuring it has the capacity to feed the AI beast for the next decade.