Micron to Strengthen AI Chip Development and Production in Japan... Expanding HBM Production and Anticipating Japanese Government Support

Sanjay Mehrotra, CEO of Micron Technology, a US semiconductor company, recently stated in an exclusive interview with TV Tokyo in Tokyo, Japan, that they plan to "strengthen research and development and production capabilities in Japan" for next-generation semiconductor memory for generative AI. This is the first time Micron has officially announced plans to expand its production of generative AI semiconductors in Japan.

The development of generative AI requires HBM (High Bandwidth Memory), a type of semiconductor memory essential for high-speed, large-volume data processing. Micron plans to expand HBM production in Japan in response to the increasing demand for generative AI. Mehrotra stated, "We are designing at our R&D center in Sagamihara and starting production at our manufacturing facility in Hiroshima Prefecture. Production for 2024 is already sold out, and production for 2025 is also nearly allocated. We will enhance development and manufacturing capabilities in Japan. We are very excited about this."

Last year, Micron announced a plan to invest 500 billion yen in next-generation semiconductor memory production in Japan. However, in this interview, they did not mention whether they would increase the investment further. Instead, they hinted that future investment requirements will "definitely require strong government support, otherwise, we won't have global competitiveness." This suggests that additional government support from Japan could be a condition for further investment. The Japanese government decided last year to provide up to 192 billion yen in support for Micron's Hiroshima plant investment, but regarding further support, a government official stated in response to TV Tokyo's inquiry that "we will consider the necessary support to improve the production capacity of AI semiconductor memory in the future."

Micron's expansion of HBM production in Japan aligns with the Japanese government's proactive semiconductor industry development policy. The Japanese government considers the semiconductor industry a core element of its national growth strategy and is actively supporting investment to strengthen its domestic production base. In particular, they are striving to increase domestic production of high-performance semiconductors essential for future growth industries such as AI, data centers, and automobiles. Micron's investment is expected to bolster the Japanese government's policies.

Meanwhile, the US government passed the CHIPS and Science Act (CHIPS Plus Act) in August 2022 to promote the domestic semiconductor industry. Under this law, the federal government has decided to invest approximately $200 billion in basic research funding from federal agencies and about $52.7 billion to strengthen domestic semiconductor manufacturing capabilities over the next five years. This reflects the US's long-term competition with China.

Through the CHIPS program, the US government aims to expand domestic semiconductor production, support related technology development, and strengthen the global semiconductor supply chain. The CHIPS program is expected to play a vital role in strengthening the US semiconductor production base and securing its economic security.

Micron's expansion of HBM production in Japan, coupled with the semiconductor industry development policies of the US and Japanese governments, is likely to reshape the landscape of the semiconductor industry in the future. It will be interesting to see how Micron's Japanese investment progresses and what support the Japanese government provides.