Micron commits $9.6 billion to Japanese memory chip plant expansion

Micron Technology reportedly planned to invest 1.5 trillion yen (approximately $9.6 billion) to build a new plant in western Japan to make memory chips for artificial intelligence applications.

The significant move comes as Micron looks to expand advanced chip production in Japan.

However, the new factory will work to manufacture high-bandwidth memory (HBM) chips, a key component which is a crucial factor for working with AI processors such as those made by Nvidia Corp.

Japan has pledged about ¥5.7 trillion so far since a pivotal plan was launched in 2021 to reconstruct the nation’s chipmaking prowess.

Micron has special plans to allocate sums to projects involving companies such as global funding giant Taiwan Semiconductor Manufacturing Co. and homegrown Rapidus Corp.

It has been observed that Micron is competing in the HBM market against South Korea’s SK Hynix Inc and Samsung Electronics Co because demand for chips has accelerated from tech firms like OpenAI and Meta Platforms Inc, whose primary focus is to effectively operate AI services.

Nonetheless, the current development marks a significant step toward dominating the next era of computing driven by AI, with Japan providing high-tech facilities, and Micron providing cutting-edge technology and global market access.