Micron Technology, a leading U.S. semiconductor firm, has announced plans to expand its manufacturing capabilities in Japan by constructing a state-of-the-art facility at its existing Hiroshima plant. The move, reported by the Nikkei newspaper, is part of a strategic initiative to enhance production of semiconductors tailored for artificial intelligence (AI) applications.
The construction of this new facility is set to begin in May of the following year, with the aim of commencing shipments of next-generation High Bandwidth Memory (HBM) by 2028. The total investment for this expansion is projected at approximately 1.5 trillion yen, equivalent to around 14 trillion won. The Japanese government has pledged substantial support, offering up to 500 billion yen in subsidies to bolster the project.
Micron's new facility will focus on producing advanced HBM, renowned for its superior memory capacity and rapid data transfer capabilities. This expansion reflects Micron's strategic pivot towards Japan, driven by geopolitical tensions involving Taiwan and the U.S.-China rivalry, which have prompted the company to diversify its production locations.
This development follows Micron's introduction of extreme ultraviolet (EUV) lithography equipment at the Hiroshima site earlier this year, marking a significant technological advancement in semiconductor manufacturing. The facility, the first major expansion at the Hiroshima plant since 2019, is poised to become a key global production hub for cutting-edge HBM technology, positioning Micron as a formidable competitor to SK Hynix, a leader in the field.
The Nikkei report highlighted the global surge in data center investments and the increasing demand for AI semiconductors. Micron's enhanced production capacity in Japan is anticipated to stabilize the supply of crucial components, alleviating shortages and potentially driving down prices.
In line with these industry developments, the Japanese government has committed to investing over 10 trillion yen in the semiconductor and AI sectors by the fiscal year 2030. This initiative aims to establish a robust and advanced semiconductor supply chain, reinforcing Japan's position in the global technology landscape.
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