Published November 30, 2025 · Updated November 30, 2025
Micron Technology will invest US$9.6 billion in a new memory chip plant in Hiroshima, Japan, focused on producing high-bandwidth memory for AI workloads. The project aims to meet accelerating global demand for specialized AI hardware, affecting cloud providers, data-centre operators and AI developers. The timing highlights the rapid expansion of infrastructure needed for modern AI systems.
Key Takeaways
- Micron will invest 1.5 trillion yen (~US$9.6 billion) to build a new high-bandwidth memory (HBM) facility in Hiroshima, Japan.
- The plant will support demand for advanced memory used in AI training and inference.
- Construction is scheduled to begin in May 2026, with shipments expected around 2028.
- Japan’s government may provide up to 500 billion yen in subsidies.
- The project strengthens Japan’s semiconductor strategy and diversifies global AI hardware supply.
- Increased HBM capacity could relieve supply pressures facing AI labs and cloud providers.
Recent developments at Micron’s AI memory plant
Micron Technology plans to build a new manufacturing facility in western Japan dedicated to high-bandwidth memory chips used for AI workloads, according to a report by Nikkei cited by Reuters. The expansion aims to supply the rapidly growing market for AI-centric memory used in data-centres and large-scale model training. The project is part of Japan’s national effort to boost semiconductor production and attract foreign chipmakers through government subsidies, positioning the country as a strategic hub for AI hardware production.
Strategic context & industry impact
Micron’s move aligns with a broader industry shift toward specialized hardware required for modern AI systems. As model sizes grow and training workloads multiply, demand for memory bandwidth has become a critical bottleneck. HBM has emerged as a key component in GPUs and AI accelerators, driving intense competition among manufacturers. By adding new capacity in Japan, Micron reduces reliance on other regions and enhances supply-chain resilience.
For the AI sector, increased HBM availability could accelerate model development, reduce hardware scarcity and support broader adoption of AI-optimized infrastructure.
Technical details
High-bandwidth memory (HBM) is a vertically stacked DRAM technology designed to deliver extremely high data throughput and energy-efficient performance. It is essential for training and deploying large language models, multimodal systems and high-performance computing workloads.
Micron’s new facility will produce next-generation HBM tailored for AI accelerators used by cloud providers and enterprise infrastructure vendors. The technology enables faster memory access, reduced latency and improved processing efficiency — all vital for running modern AI models.
Practical implications for users & companies
For users and developers
- Greater HBM supply may reduce hardware shortages that limit AI training availability.
- Potential improvements in inference performance as cloud providers deploy better-equipped servers.
- More accessible access to high-performance compute infrastructure for AI startups and researchers.
For companies
- Cloud platforms and AI hardware vendors may gain new long-term supply opportunities.
- Reduced risk of delays in deploying or scaling AI infrastructure reliant on HBM.
- Hardware costs may stabilize as competition in the HBM market increases.
- Companies operating in Japan may benefit from localized semiconductor production and reduced geopolitical risk.
What happens next
Construction of the new facility is expected to begin in May 2026 on an existing Micron site in Hiroshima. According to the report, the company aims to begin shipments around 2028, with government subsidies and final regulatory approvals still pending. The project reinforces Micron’s long-term strategy to expand HBM production and meet the accelerating hardware requirements of the AI industry.
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