U.S.-based Micron Technology plans a $10 billion expansion of its Hiroshima,Japan,manufacturing facility to meet growing demand for advanced memory chips critical to artificial intelligence development. The project, announced Thursday and slated to begin in May 2026, will focus on High Bandwidth memory (HBM) and receive significant subsidies from the Japanese government as it seeks to bolster its domestic semiconductor industry [[1]]. This investment comes amid increasing concerns about potential shortages and rising costs within the global memory chip market.
Micron Technology, a leading U.S. memory chip manufacturer, plans to construct a new production building at its Hiroshima factory in Higashihiroshima, Japan, according to a report in the Nikkei. The project, slated to begin in May 2026, will focus on manufacturing next-generation memory for artificial intelligence applications, with shipments expected around 2028.
The new facility will produce advanced High Bandwidth Memory (HBM), a high-performance type of Dynamic Random-Access Memory (DRAM) used for temporary data storage. The investment is valued at 1.5 trillion yen (approximately $10 billion USD), with Japan’s Ministry of Economy, Trade and Industry (METI) offering subsidies of up to 500 billion yen ($3.3 billion USD).
Micron logo
Photographer: Qilai Shen/Bloomberg
A Micron spokesperson declined to comment on the Nikkei report.
Micron acquired the Hiroshima factory in 2013 through its purchase of Elpida Memory, and the site has since become a crucial part of the company’s global operations. This expansion underscores the importance of the location to Micron’s future production capacity.
The Japanese government has committed approximately 5.7 trillion yen ($38 billion USD) since 2021 to revitalize the nation’s semiconductor industry, providing support for individual company projects. To date, Micron has been allocated subsidies totaling up to 774.5 billion yen ($5.1 billion USD), alongside support for companies like Taiwan Semiconductor Manufacturing (TSMC) and Rapidus.
According to a statement on METI’s website, Micron received preliminary approval for subsidies in September to expand equipment at the Hiroshima factory. The project aims to enable the production and stable supply of next-generation DRAM, with a maximum subsidy amount of 500 billion yen ($3.3 billion USD).
The announcement comes amid surging global demand for AI infrastructure, prompting warnings from technology companies like Dell Technologies and HP about potential shortages of semiconductor memory.
Jeff Clarke, COO of Dell Technologies, stated during an analyst call on November 25 that supplies of DRAM – including HBM and chips for PCs – as well as hard drives and NAND flash memory, are becoming increasingly constrained, leading to unprecedented cost increases.
