Micron plans major HBM expansion in Japan

December 1, 2025 /SemiMedia/ — Micron Technology is preparing a significant expansion of its manufacturing footprint in Japan as demand for high-bandwidth memory accelerates across the AI supply chain. According to people familiar with the plan, the U.S. memory maker intends to build a new HBM facility in Hiroshima to reinforce its position in the advanced memory market.

Sources said the investment will total about 1.5 trillion yen, marking one of Micron’s largest commitments in Japan. Local media reported the company aims to break ground in May next year, with initial output expected around 2028 to support rising needs from data-center operators and AI developers.

Japan’s subsidies fuel semiconductor rebuilding efforts

Japan’s Ministry of Economy, Trade and Industry is expected to provide subsidies of up to 500 billion yen to help Micron introduce next-generation equipment and expand its HBM capacity. The incentives are part of Tokyo’s broader strategy to rebuild its semiconductor ecosystem and draw more overseas chipmakers into the country.

Nikkei reported that Micron’s expansion in Hiroshima will also diversify its manufacturing base and reduce reliance on production in Taiwan. The move positions the company to compete more effectively with SK Hynix, which currently leads the HBM segment.

AI-driven demand reshapes the memory supply chain

Japan is simultaneously backing the construction of an advanced logic fab that uses IBM technology, aiming to strengthen domestic capabilities across memory and leading-edge logic production.

HBM has become a crucial component for AI servers and large-scale model training, driving a surge in demand from cloud and hyperscale customers. Micron’s new project is viewed as a strategic response to the rapid shift toward memory-intensive AI workloads.