Micron to Open Hiroshima Chip Plant by 2027

Micron recently announced plans to establish a new DRAM chip manufacturing facility in Hiroshima, Japan, incorporating advanced extreme ultraviolet (EUV) lithography equipment. The facility is expected to begin mass production of state-of-the-art DRAM by the end of 2027.

The total investment for this new plant is estimated to be between 600 billion and 800 billion yen (approximately $3.8 billion to $5.1 billion), with construction commencing in early 2026. This substantial investment will fund the creation of a cutting-edge manufacturing facility, including the integration of EUV technology.

Micron had originally planned to build this plant in Japan, with initial projections targeting operational status by 2024. However, the project was temporarily put on hold due to unfavorable market conditions. With the recent resurgence in the chip market, particularly driven by the booming demand for DRAM chips in the artificial intelligence sector, Micron has decided to reinvigorate the project.

The Hiroshima facility, acquired by Micron in 2013 through the purchase of Japanese DRAM manufacturer Elpida, currently employs over 4,000 engineers and technicians.

In December of last year, Joshua Lee, President of Micron Japan, announced that the Hiroshima plant would start producing the most advanced memory chips, known as "1-gamma (Gamma) DRAM," by 2025. Additionally, the facility will produce high-bandwidth memory (HBM) for use in generative AI applications.

In October 2023, Japan's Ministry of Economy, Trade, and Industry announced a subsidy of up to 192 billion yen (approximately $1.3 billion) for Micron's Hiroshima plant.

Micron plans to invest up to 500 billion yen in Japan over the coming years, encompassing several facilities. These investments are central to Micron's research and development roadmap and the high-volume production of leading-edge DRAM technology across its product lines.