According to a report by Nikkan Kogyo on Wednesday, Micron Technology plans to build a DRAM factory in Hiroshima Prefecture in western Japan at a cost of 800 billion yen (US$6.98 billion), but did not specify the source.
As per the report, the largest memory chip manufacturer in the United States will purchase land near the existing facilities in Higashihiroshima City for the construction of factories at an estimated cost of about 600 to 800 billion yen. Nikkan Kogyo added that the Japanese government may provide some subsidies.
When the report was released, Japan’s Ministry of Economy, Trade and Industry said in June that it would regard the growth of the semiconductor industry as a “national project” due to fears that the country would lose its advantage in this area. Last week, TSMC said it would build a special chip manufacturing plant in Japan, and plans to start production in 2024. The Asahi newspaper reported the next day that the government was prepared to provide about 500 billion yen in financial support, covering nearly half of the total investment.
Micron’s new factory will begin operations in 2024 and will meet the mid- to long-term needs of data centers and other applications. According to the report, the plant is expected to create 2,000 to 3,000 jobs, including jobs for business partners.
SMBC Nikko Securities Inc. analyst Takeru Hanaya wrote in a report that the report left a positive impression because he believes that the 800 billion yen investment is additional information for the semiconductor production equipment industry, beyond what is already known. Plans to build factories in Taiwan, Hiroshima or Singapore. The company assumes that the final determination of the investment “will lead to a long-term bullish outlook, at least for Micron’s DRAM market.”
