Micron to Launch Advanced Memory Chip Production in Japan by 2026

Hiroshima Facility Targets Cutting-Edge DRAM for AI and Data Centers

Micron Technology, a leading U.S.-based memory semiconductor company, has unveiled ambitious plans to initiate mass production of next-generation memory chips at its Hiroshima factory in Japan starting next year. This strategic move aims to bolster the supply of high-performance memory solutions tailored for artificial intelligence (AI) data centers and other advanced applications. According to reports from Nikkei新聞 and Jiji Press, Micron’s Hiroshima facility will focus on producing dynamic random-access memory (DRAM) with a cutting-edge 10-nanometer (nm) process, delivering remarkable improvements over previous generations. This advanced DRAM, dubbed "1-gamma" in industry terms, promises a 15% boost in data transfer speeds, over 20% reduction in power consumption, and a memory capacity increase exceeding 30% per unit area, making it a game-changer for energy-efficient, high-speed computing needs. By leveraging these enhancements, Micron intends to solidify its position in the competitive DRAM market while meeting the surging global demand for AI-driven technologies.

The Hiroshima plant’s production will extend beyond standard DRAM to include high-bandwidth memory (HBM), a critical component for running generative AI systems. HBM, known for stacking DRAM layers to maximize performance, is currently in short supply worldwide, driving Micron to capitalize on this opportunity. The company’s investment in Japan aligns with its broader vision of establishing a stable supply chain for AI data center memory chips, a sector poised for explosive growth as businesses and governments increasingly adopt AI solutions. To support this endeavor, Micron announced in May 2023 a massive investment of up to 500 billion yen (approximately $3.6 billion USD or 4.82 trillion KRW) into the Hiroshima facility. This financial commitment, partially backed by the Japanese Ministry of Economy, Trade, and Industry with subsidies of up to 192 billion yen, underscores a collaborative effort to enhance Japan’s semiconductor industry. In return, Micron has pledged to ramp up memory chip production during periods of supply shortages, ensuring Japan’s role as a key player in the global tech landscape.

To achieve its goals, Micron plans to integrate extreme ultraviolet (EUV) lithography equipment into the Hiroshima factory by June this year, a critical step for manufacturing these state-of-the-art memory chips. EUV technology enables the precision required for 10nm processes, positioning the facility at the forefront of semiconductor innovation. The advanced DRAM produced here will cater to the needs of AI data centers, where speed, efficiency, and capacity are paramount, while the HBM output addresses the escalating demand from generative AI developers. This dual-purpose production strategy highlights Micron’s foresight in targeting two high-growth markets simultaneously. The company’s focus on Japan also reflects a calculated move to diversify its manufacturing footprint, reducing reliance on other regions amid geopolitical tensions and supply chain disruptions.

Micron, currently holding the third spot in global DRAM market share, views this expansion as a chance to close the gap with industry leaders Samsung Electronics and SK Hynix, both headquartered in South Korea. By harnessing the Hiroshima factory’s capabilities, Micron aims to challenge its rivals in the race for dominance in the memory semiconductor space, particularly in the lucrative AI and HBM segments. The Japanese government’s support further amplifies this initiative, as it seeks to revitalize its domestic semiconductor sector and reduce dependence on foreign suppliers. With the facility set to begin mass production next year, Micron is poised to deliver a steady stream of advanced memory chips, reinforcing its reputation as an innovator in the field and meeting the evolving needs of a tech-driven world. This development not only strengthens Micron’s market position but also enhances Japan’s standing as a hub for cutting-edge semiconductor manufacturing.