Micron's New DRAM Plant in Hiroshima by 2027

On June 13th, Micron Technology, a leading DRAM manufacturer, announced plans to invest between ¥600 billion and ¥800 billion in a new DRAM fabrication plant in Hiroshima, Japan. Construction is set to begin in early 2026, with the facility expected to be operational by late 2027. The new plant will be located adjacent to the existing Fab15 facility and will initially focus on DRAM wafer production, particularly High Bandwidth Memory (HBM) products.

The new Hiroshima DRAM facility will be one of the first to integrate Extreme Ultraviolet (EUV) lithography equipment, producing advanced DRAM chips using 1-Gamma technology, with plans to upgrade to 1-Delta technology. This requires a significant increase in EUV equipment installations and the implementation of high-grade cleanrooms.

Currently, Fab15 in Hiroshima handles HBM wafer production and silicon via (TSV) processes, with backend stacking and testing managed by Micron's Taichung facility in Taiwan. In addition, One Mega Taiwan (OMT) is set to join the HBM wafer production sector next year, enhancing wafer production and TSV processes.

Market research firm TrendForce highlights the robust growth in the HBM market, driven by increasing demand despite challenges such as lower production yields and larger chip sizes compared to DDR5, which require approximately three times the wafer input per equivalent output. This growth is expected to impact traditional DRAM production capacity.

Micron's expansion into the HBM market is essential to meet the projected demand, with capacity fully booked through 2025. The new facility is crucial for this expansion. Micron aims to maintain a market share of 20% to 25% in the HBM product line by 2025, striving to match its presence in the traditional DRAM market.

The Hiroshima plant project has received significant support from the Japanese government, including ¥19.2 billion for construction and equipment costs, as well as additional subsidies for production and research and development expenses, to enhance cost competitiveness.