July 8, 2026 /SemiMedia/ — Micron Technology is moving forward with an expansion of its Hiroshima plant in Japan as competition intensifies among global memory makers to build production capacity for artificial intelligence memory chips.

The company held a groundbreaking ceremony for the Hiroshima expansion project on July 4 local time, according to reports. The investment is valued at 1.5 trillion yen, or about $9.48 billion.

Micron plans to build a new manufacturing facility at its existing Hiroshima site to produce HBM and other AI memory chips. Shipments from the new capacity are expected to begin around the summer of 2028.

Japan is also increasing government support for the project. The Ministry of Economy, Trade and Industry has arranged subsidies of up to 500 billion yen to help cover construction costs. The move is viewed as part of Japan’s effort to secure an advanced domestic memory production base through Micron, which operates a DRAM manufacturing site in the country.

Tight AI memory supply is a key driver of the investment. Demand for HBM, server DRAM and high-capacity storage products is rising rapidly as cloud service providers and AI chip customers continue expanding data center infrastructure.

Micron has said memory shortages are unlikely to ease quickly. Chief Executive Officer Sanjay Mehrotra previously said the sharp decline in memory prices in 2023, together with customer pressure for lower prices, weakened the industry’s ability to invest. The subsequent reduction in capital expenditure has contributed to the current supply-demand imbalance.

Outside Japan, Micron is also expanding production in the United States. The company is building an advanced manufacturing facility in Boise, Idaho, and plans to invest in a large DRAM production site near Syracuse, New York.