Micron Technology announced a $9.6 billion investment to build a next‑generation high‑bandwidth memory (HBM) plant in Hiroshima, Japan. The facility will use EUV lithography to produce HBM3E and 1‑gamma DRAM chips that power data‑center and edge AI workloads.
Construction is slated to begin in May 2026, with the first product shipments expected in 2028. The Japanese government has pledged up to ¥500 billion in subsidies to support the project, underscoring the country’s push to attract advanced semiconductor manufacturing.
The investment is part of Micron’s broader $200 billion U.S. expansion plan, which includes new fabs in Idaho, New York, and Virginia. Together, the U.S. and Japan sites will give Micron a diversified, geographically balanced supply chain that reduces exposure to geopolitical risks in Taiwan and South Korea.
Micron’s decision comes after a record fiscal year 2025, in which the company generated $37.38 billion in revenue and $11.32 billion in Q4 earnings, driven by surging demand for AI‑enabled memory. The company’s CEO, Sanjay Mehrotra, said the company is “uniquely positioned to capitalize on the AI opportunity ahead” and that disciplined investments are essential to sustain its competitive edge.
The new plant will help Micron compete with SK Hynix and Samsung, who dominate the HBM market. By increasing domestic production capacity, Micron can secure a larger share of the high‑margin AI memory segment and mitigate supply‑chain bottlenecks that have plagued the industry.
Micron’s financial performance supports the investment: Q3 2025 revenue rose 36% to $9.30 billion, and Q4 2025 revenue reached $11.32 billion, reflecting strong demand across data‑center and cloud customers. The company’s ability to generate robust cash flow enables it to fund the Japan plant while maintaining a healthy balance sheet.
The announcement signals Micron’s confidence in sustained AI growth and its commitment to building a resilient, high‑technology manufacturing ecosystem. Investors view the investment as a strategic bet on the long‑term expansion of AI workloads and the need for high‑performance memory.
Micron’s move also aligns with global semiconductor policy trends, as governments in the U.S. and Japan seek to reduce reliance on foreign supply chains. The partnership with Japanese authorities and the subsidy package position Micron to accelerate production ramp‑up and capture early market share in the next wave of AI hardware.
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