Micron Technology is set to invest 1.5 trillion yen (approximately $96 billion) in building a new factory for advanced High Bandwidth Memory (HBM) chips in Hiroshima, Japan, according to a report from the Nikkei Shimbun cited by Reuters.
The factory, located in Hiroshima in western Japan, is expected to break ground in the existing facility area in May next year and aims to start shipping around 2028. The Japanese Ministry of Economy, Trade and Industry will provide up to 500 billion yen (about $32 billion) in subsidies for the project.
Reuters could not immediately verify this report.
In an effort to revive the declining semiconductor industry in Japan, the government is actively providing generous subsidies to attract international giants like Micron and TSMC to invest in the country. At the same time, the Japanese government is also funding the construction of a large advanced logic chip factory incorporating IBM technology.
The growth in investment in artificial intelligence and data centers is driving the demand for HBM chips.
According to the Nikkei Shimbun, the expansion of Micron’s Hiroshima plant this time will not only help reduce reliance on Taiwan’s production capacity but also enhance its competitiveness against market leader SK Hynix.
(Source: Central News Agency)