Micron Begins $9.3 Billion Japan Plant Expansion To Boost AI Chip Production

US semiconductor giant Micron Technology (NASDAQ: MU ) has started its expansion work on a factory in Japan that will mass‑produce cutting‑edge semiconductors for generative AI and other applications.

The Boise, Idaho‑based company will invest about $9.3 billion in factory expansion, NHK World reported, citing Japan’s Ministry of Economy, Trade and Industry.

The ministry will provide about $3.3 billion in subsidies, Japan’s international public broadcasting service reported.

Construction is expected to proceed in phases at the company’s new Hiroshima Prefecture plant in western Japan.

The installation of semiconductor manufacturing equipment is scheduled to begin in the first half of 2028, according to NHK World.

Micron CEO Sanjay Mehrotra joined senior Japanese officials on Saturday as the company broke ground on its new Hiroshima plant.

Economy, Trade and Industry Minister Akazawa Ryosei attended the ceremony, underscoring Tokyo’s commitment to expanding advanced semiconductor manufacturing capacity. "When American boldness meets Japanese craftsmanship, you do not get a compromise," Mehrotra said during the ceremony. "You get the best in the world." Akazawa said that semiconductors were extremely important strategic materials from the perspective of economic security.

Micron currently produces DRAM memory semiconductors at the factory. “Demand for semiconductors is expected to grow rapidly as we enter the age of AI,” Ryosei said. “It is extremely important to establish a domestic manufacturing base for semiconductors, including DRAM, and to ensure a stable supply system.” Micron first acquired the facility in 2013 through its purchase of bankrupt DRAM maker Elpida Memory.

Elpida’s assets included the 300mm DRAM fab in Hiroshima Prefecture.

Micron’s Expansion Push The expansion is part of a global ramp-up by memory makers to meet demand for AI.

Micron manufactures dynamic random-access memory, or DRAM, a key component in a wide range of devices, including cell phones, laptop computers, servers, and more.

In January, Micron broke ground on a $100 billion production site near Syracuse, New York.

With up to four fabs, this will be the largest semiconductor facility in the US, Micron said.

In June last year, the company said it would spend $200 billion to expand domestic manufacturing in the US.

That included a second memory fabrication plant in Boise.

Micron’s first Idaho fab will start its DRAM output at the start of 2027.

The second Idaho facility and four planned New York fabs would help Micron reach its goal of producing 40% domestically.

Micron’s manufacturing facilities are expected to create about 75,000 domestic jobs over the next 20-plus years, the company said.

They will strengthen US economic and national security, furthering American innovation and competition for years to come.