TOKYO: U.S. semiconductor giant Micron Technology is set to pour 1.5 trillion yen ($9.6 billion) into a cutting-edge facility in Hiroshima, western Japan, to manufacture advanced memory chips tailored for artificial intelligence applications, the Nikkei reported Saturday. The massive investment underscores Tokyo’s aggressive push to reclaim semiconductor supremacy as AI demand skyrockets worldwide.
The new plant will focus on next-generation dynamic random-access memory (DRAM) and high-bandwidth memory (HBM) chips, critical for powering data centers and AI training models from firms like Nvidia and OpenAI. Construction is slated to begin soon, with production ramping up by late 2027, enabling Japan to produce these components domestically and reduce reliance on volatile global supply chains strained by U.S.-China trade frictions.
Micron, already a fixture in Hiroshima with its existing plant operational since 1979, will leverage local expertise and government incentives. Japan’s industry ministry has pledged subsidies under its $13 billion Rapidus initiative, aiming to foster a “virtuous cycle” of innovation. “This bolsters our resilience in the AI era,” a ministry official noted, highlighting partnerships with domestic players like Kioxia.
The move aligns with broader U.S.-Japan alliances to counter Beijing’s dominance—China controls over 50% of global memory production. Analysts predict the facility could add 1,000 high-tech jobs and boost Micron’s revenue by 20% annually post-launch. As AI chips evolve, Hiroshima’s revival signals Asia’s pivot toward self-sufficient tech ecosystems, potentially reshaping the $500 billion industry by 2030.