Micron Technology is building a $9.3 billion next-generation memory semiconductor plant in Hiroshima, Japan, as it moves to expand production of high-bandwidth memory (HBM) for artificial intelligence. As the AI semiconductor market grows rapidly, the move is seen as a strategy to increase supply capacity against SK hynix and Samsung Electronics.

Cryptopolitan reported on July 4 local time that Micron plans to begin mass production of HBM at its Hiroshima plant from summer 2028. Japan’s Ministry of Economy, Trade and Industry will support the project with up to 500 billion yen, and plans to foster it as a strategic industry aimed at building a key semiconductor supply chain for the AI era in Japan.

HBM stacks multiple DRAM chips vertically to deliver much higher bandwidth and power efficiency than conventional memory. It is considered a key component for AI accelerators including those from Nvidia and for servers used to train large language model (LLM) systems, and demand is surging along with expanding AI infrastructure. Micron, SK hynix and Samsung Electronics are all moving quickly to expand capacity and shift to next-generation products.

Competition is also intensifying. Counterpoint Research said SK hynix led the global HBM market at about 57 percent at the end of last year, with Samsung Electronics at 22 percent and Micron at 21 percent. Samsung Electronics is pursuing both next-generation HBM4E sample supplies and HBM5 development, while SK hynix is moving to defend its lead by supplying key customers with 12-high HBM4E with improved power efficiency.

In this situation, Micron’s Hiroshima plant has meaning beyond a simple capacity expansion. That is because AI chipmakers sign memory supply contracts years ahead of actual product launches, making long-term supply capacity a key competitive factor. Micron is aiming to expand supply agreements with major AI companies through the new plant.

Growth in the AI memory business is also clear. Micron’s fiscal 2026 third-quarter revenue rose to $41.46 billion from $9.3 billion a year earlier. Chief Executive Sanjay Mehrotra (산제이 메흐로트라) said the spread of AI is sharply raising the strategic value of the memory industry.

Just before breaking ground, Micron also signed a strategic partnership with AI startup Anthropic. The two companies are pursuing joint development of memory architecture and long-term supply agreements, and Micron also participated in Anthropic’s Series H investment round. Tom Brown (톰 브라운), Anthropic’s co-founder and chief computing officer, said memory and storage are key factors that determine the training and service efficiency of its AI model Claude.

The Japanese government is also supporting the investment at the level of national strategy. Japan has maintained competitiveness in semiconductor materials and equipment, but has been relatively lacking in the production base for cutting-edge AI memory. Once the Hiroshima plant comes online, Japan will be able to produce HBM for AI domestically, and the government expects momentum to build for creating an advanced semiconductor ecosystem together with the Rapidus and TSMC projects it supports.

Micron is currently diversifying its production bases across the United States, Japan, Taiwan and Singapore. As demand for AI semiconductors rises rapidly, the Hiroshima plant is expected to serve as a key production hub to strengthen supply-chain stability and expand its share of the HBM market.