Intensifying Competition in Semiconductor Memory: U.S. Micron Invests 150 Billion JPY in Hiroshima, Japan
It is reported that, with support from the Japanese government, Micron Technology, the third-largest global semiconductor memory company, plans to expand its production facilities for next-generation artificial intelligence (AI) memory. This comes just four days after Samsung Electronics and SK Hynix announced their investment of 8 trillion KRW (approximately 350 billion RMB) in four new semiconductor plants in South Korea's southwest region in June.
On the 4th, Micron held a groundbreaking ceremony for its new facility at its factory in East Hiroshima, located in Hiroshima Prefecture, alongside Japan’s Ministry of Economy, Trade and Industry (METI). Micron will invest a total of 150 billion JPY (approximately 1.4 trillion KRW) in this plant, planning to begin phased production of cutting-edge memory semiconductors such as High Bandwidth Memory (HBM) starting in 2028. The Japanese government will provide one-third of the funding, up to a maximum of 53.6 billion JPY (approximately 5 trillion KRW).
Can the U.S.-Japan Semiconductor Alliance Be Revived?
First among the major concerns is the collaboration between Micron and the Japanese government. According to analyses by Japanese media, “Micron’s investment in the Hiroshima plant reflects Japan’s strategic effort to revive its semiconductor industry.” With this expansion in Hiroshima as a catalyst, Japan aims to establish a leading-edge semiconductor memory manufacturing supply chain—by introducing TSMC’s Kumamoto factory in Taiwan, nurturing Rapidus’s 2-nanometer process technology, and building domestic capabilities.
Some analysts suggest Japan intends to leverage its strengths in raw materials and equipment, combined with memory manufacturing, to create a “closed-loop semiconductor supply chain.” Others argue that “Japan hopes to regain its former prominence in finished product manufacturing, based on its competitive advantages in semiconductor materials and equipment.” At the groundbreaking ceremony, Japanese Minister of Economy, Trade and Industry Ryōsuke Akazawa emphasized: “The ability for Japan to independently produce advanced memory chips holds significant global importance.”
Micron is also rapidly expanding its domestic production capacity in the United States. In Boise, Idaho, two of the most advanced production facilities are under construction; in New York State, a super-factory worth $100 billion (approximately 153 trillion KRW) is being developed, with plans to commence operations by 2030. In January, Micron also announced the acquisition of a factory from Taiwan’s PSMC. According to analyses by foreign media outlets such as Bloomberg, “The U.S. federal and state governments are actively supporting Micron’s aggressive investments.”
Source: Chosun Ilbo
Original article: toutiao.com/article/1869952762387468/
Disclaimer: The views expressed in this article are those of the author alone.