US chipmaker Micron Technology is set to spend ¥1.5 trillion (about US$9.6 billion) to build a new memory-chip manufacturing plant in Hiroshima, western Japan.
According to a report from Japanese newspaper Nikkei, the facility will produce advanced high-bandwidth memory (HBM) chips a critical component for artificial-intelligence (AI) computing and data centres. The plant is expected to use an existing Micron site: construction is slated to begin in May 2026, with chip shipments projected to start around 2028.
The initiative comes as part of Japan’s broader push to revive its semiconductor industry. The government through the Ministry of Economy, Trade and Industry (METI) is reportedly offering up to ¥500 billion in subsidies to support the project.
The plant will help Micron diversify production beyond Taiwan, positioning it to better compete with major rivals like SK Hynix. It also seeks to capitalise on rising demand for HBM chips driven by growing global AI and data-centre workloads.
If all goes according to plan, the new facility could significantly reshape the supply chain for AI-oriented hardware with potential ripple effects across global technology markets, including increased competition, reduced supply-chain risks, and pricing pressure in the memory-chip sector.
By Michelle Ndaga
