Micron Technology plans to build a new plant in Hiroshima Prefecture, Japan, that will manufacture (dynamic random-access memory) DRAM semiconductors.
According to a report from Japanese outlet Daily Industrial News, the total investment of Micron will be roughly $5.1 billion with operations expected to begin at the end of 2027. Construction of the plant is scheduled to begin in early 2026 and will include the installation of extreme ultraviolet (EUV) lithography equipment.
Of the investment, the Japanese government will invest about $1.3 billion to support the construction of the fab and it would help Micron incorporate ASML’s EUV equipment. The DRAM chips will be used for powering next-generation generative artificial intelligence (AI), data centers and autonomous driving technology.
Currently, Micron employs more than 4,000 engineers and technicians in Japan after acquiring DRAM vendor Elpida in 2013.
Other investments
Japan has also been bolstering its own regional manufacturing with subsides to TSMC, Rapidus and other companies to expand its own control over chip supply chains.
Taiwan Semiconductor Manufacturing Co. (TSMC) opened its first Japanese fab in the Kumamoto Prefecture in February. The TSMC fab will receive Japanese government subsidies and is a collaboration with Japanese-based companies Toyota Motor Corp., Denso Corp. and Sony Semiconductor.
Since the inception of the JASM fab, numerous other companies have decided to set up shop in the Kumamoto region. Market research firm TrendForce said that at least 35 related supply chain companies have established roots in the region and followed through with investments.
JSMC, a foundry subsidiary of Powerchip Semiconductor Manufacturing Corp. (PSMC) is also collaborating with Japan’s government for the construction of the foundry, which is set to complete construction by 2027.
Rapidus, a semiconductor foundry startup, plans to commence production of 2 nanometer chips in Hokkaido by 2027.
