Micron Breaks Ground on 14 Trillion Won Hiroshima Plant, Accelerating Japan's Semiconductor Revival

U.S. semiconductor company Micron has begun preparations to mass-produce next-generation high-bandwidth memory (HBM) at its Hiroshima plant in Japan.

According to Japanese media, Micron held a groundbreaking ceremony for a new manufacturing facility at its Hiroshima plant on July 4, with Japanese Minister of Economy, Trade and Industry Ryosei Akazawa in attendance.

Micron plans to begin installing manufacturing equipment in the new building in the second half of 2028 to produce cutting-edge products, including DRAM and HBM.

The company also intends to produce HBM4E, the seventh-generation HBM product.

Last year, Micron announced plans to invest approximately 1.5 trillion yen (about 14.2 trillion won) in the Hiroshima plant, with Japan's Ministry of Economy, Trade and Industry providing up to 536 billion yen (about 5 trillion won) in support.

The construction of this new manufacturing building is part of that investment.

Micron plans to first invest in a site of approximately 28,000 square meters as part of the first phase, with plans to expand production capacity thereafter.

At the groundbreaking ceremony, Micron CEO Sanjay Mehrotra stated, "Memory demand is increasing at an unprecedented level."

Japanese media, including the Nikkei, assessed that Micron's investment in the Hiroshima plant holds significant meaning for the strengthening of Japan's domestic semiconductor supply chain.

The Hiroshima plant, where Micron produces DRAM and HBM, was acquired from the former Japanese company Elpida Memory and is considered the only hub for DRAM production in Japan.

The Japanese government's investment in this plant is interpreted as part of its all-out effort to rebuild the semiconductor industry, which once dominated the global market in the 1980s.

Through large-scale subsidies, the Japanese government successfully attracted a plant from TSMC, the world's top foundry (semiconductor contract manufacturer), to Kumamoto Prefecture.

TSMC is currently producing 12 to 28-nanometer (nm) products at its first Kumamoto plant, which opened in 2024, and plans to produce 3-nanometer process semiconductors at its second plant, which is scheduled to begin operations in December 2027.

In addition, the Japanese government has poured massive investments into Rapidus, a company established in 2022 to revive the semiconductor industry.

Rapidus is reportedly planning to begin mass production of 2-nanometer products before March 2028, achieve a surplus in 2029, and go public on the stock market in 2031.

Meanwhile, demand for semiconductors is expected to continue growing for the time being.

According to market research firm Counterpoint Research, the global DRAM market reached 152.9 billion dollars (about 234 trillion won) last year, an increase of more than 50% compared to 2024, and is expected to grow even further in 2026.

(Photo: Getty Images)
※ Please note: This article was translated by AI and may contain errors.