Full Breakdown
Micron Breaks Ground on $9.3 B Hiroshima Expansion for AI Memory
7/5/2026, 6:14:17 AM
Groundbreaking in Hiroshima
On 4 July 2024 Micron Technology began a ¥1.5 trillion (?$9.3 bn) clean-room expansion at its Micron Memory Japan plant in Higashihiroshima. The project adds a 28,000 m² cleanroom and targets HBM production in summer 2028. Japan’s METI will subsidise up to ¥500-¥536 billion (?$3.2-$3.3 bn). Attendees included former Prime Minister Fumio Kishida, METI Minister Ryosei Akazawa, and Micron CEO Sanjay Mehrotra.
Strategic Context
Micron bought the Hiroshima DRAM fab from Elpida in 2013, securing a foothold in Japan. Global AI workloads are driving rapid growth in high-bandwidth memory (HBM), a tier that complements GPUs such as Nvidia’s. SK Hynix held 58 % of the HBM market in Q1 2026, while Micron and Samsung each held roughly 21 %. The Hiroshima expansion is part of Micron’s $200 bn plan to raise domestic capacity in the United States and diversify supply away from South Korea and Taiwan.
Timeline & Milestones
- 2013 – Acquisition of Elpida’s Hiroshima fab.
- 4 July 2024 – Groundbreaking ceremony.
- 2028 (H1/H2) – Equipment installation and first HBM shipments.
Key Data
- Investment: ¥1.5 trillion ($9.3 bn).
- Subsidies: ¥500-¥536 billion ($3.2-$3.3 bn).
- Cleanroom: 28,000 m².
- Jobs: >1,000 new positions at Hiroshima; Micron’s U.S. projects target ~75,000 jobs over two decades.
- Micron Q3 2026 revenue: $41.46 bn; GAAP EPS $24.67.
Implications
The new facility adds a non-Korean, non-Taiwanese node, reducing geopolitical risk and deepening Japan-U.S. economic-security cooperation. Increased HBM output could narrow SK Hynix’s lead and shape future contracts with Nvidia and other AI-chip makers.
Official Statements
Japanese officials highlighted the strategic need for a stable semiconductor supply and praised Japan-U.S. collaboration as essential to economic security. Micron’s leadership described the project as a blend of “American boldness” and “Japanese craftsmanship” driving world-class AI memory production.
Criticism
Analysts caution that expanding capacity at a cycle peak can trigger price falls when supply overtakes demand, raising doubts about the durability of the current memory boom.
Conflicting Reports
Sources list the subsidy as either ¥500 billion or ¥536 billion, and cite equipment installation in either the first or second half of 2028.
Verbatim Quotes
- “When American boldness meets Japanese craftsmanship, you do not get a compromise,” — Sanjay Mehrotra, CEO, Micron Technology
- “Memory demand is increasing like never before,” — Sanjay Mehrotra, CEO, Micron Technology
- “It is extremely important to ensure a stable supply system,” — Ryosei Akazawa, Minister of Economy, Trade and Industry, Japan
- “a combination of magic and science” — Sanjay Mehrotra, CEO, Micron Technology
What’s Next
Equipment installation begins in 2028, with HBM shipments slated for the summer. Parallel U.S. fabs in Idaho and New York are scheduled for initial output in 2027-2028, positioning Micron to meet AI memory demand through the decade.
