(Nov 29): Micron Technology Inc will spend JPY1.5 trillion (US$9.6 billion or $12.4 billion) to build a plant in western Japan to make memory chips for artificial intelligence (AI) applications, Nikkei newspaper reported.
The move comes as Micron looks to diversify advanced chip production outside of Japan, Nikkei said, citing people familiar with the matter. The new factory will manufacture high-bandwidth memory (HBM) chips, a key component for working with AI processors such as those made by Nvidia Corp, according to the report.
Micron will build the facility within the compound of its Hiroshima plant, starting in May, with plans to launch HBM shipments around 2028, Nikkei said. The Ministry of Economy, Trade and Industry will subsidise up to JPY500 billion of the costs for the project, the newspaper said.
Japan has set aside about JPY5.7 trillion so far in a plan initiated in 2021 to rebuild the nation’s chipmaking prowess. In addition to Micron’s plant, it has also been allocating sums to projects from companies including global foundry giant Taiwan Semiconductor Manufacturing Co (TSMC) and home-grown Rapidus Corp.
Micron is competing in HBM against South Korea’s SK Hynix Inc and Samsung Electronics Co. Demand for the chips has surged from tech firms like OpenAI and Meta Platforms Inc as they focus on training and operating AI services.
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