US memory giant Micron Technology on Saturday broke ground on the expansion of its factory in Japan's Hiroshima Prefecture, a ¥1.5 trillion ($9.3 billion) undertaking to produce advanced memory chips, Bloomberg reported. 

The Boise, Idaho-based company is building the facility in Hiroshima Prefecture to make chips such as high-bandwidth memory crucial for AI processors like Nvidia’s, with shipments to start around the summer of 2028. The Ministry of Economy, Trade and Industry has allocated up to ¥500 billion to help cover the cost.

The move is part of a global ramp up by memory-makers to meet relentless demand for artificial intelligence. Micron is building two leading-edge fabs in Boise and in January held a groundbreaking ceremony for a $100 billion production site outside Syracuse, New York, part of a pledge to increase DRAM production on American soil. South Korea’s SK Hynix and Samsung Electronics are also boosting manufacturing capacity. Meanwhile, Chinese memory maker CXMT, is preparing for what is set to be one of the biggest IPOs in Chinese history. 

“Micron’s very first HBM production wafer — for the memory technology at the heart of AI — was made right here in Hiroshima,” Micron CEO Sanjay Mehrotra said during a ceremony attended by central and local government officials. “When American boldness meets Japanese craftsmanship, you do not get a compromise. You get the best in the world.”

The factory expansion in Japan will help Micron raise power and transmission efficiency in chips needed for AI services and self-driving vehicles. Along with funds to support research and development, the Japanese government has earmarked roughly ¥775 billion for the US company to date.

Japan’s support for Micron, now the only maker of DRAM within the country’s borders, has “invaluable worth,” said industry minister Ryosei Akazawa, who attended the ceremony. But should other overseas chipmakers seek to build factories in Japan, the country is ready to do “all that it can” to help, he said. And judging by the profit margins currently generated by memory companies, in many cases north of 80%, expect an influx of companies willing to be funded by Japan's government to make what is ultimately a cyclical commodity product.

Since 2021, Tokyo has set aside tens of billions of dollars of support for semiconductors and AI, seeking to gain leadership in a sector seen as central for national security. Last month, Prime Minister Sanae Takaichi released a roadmap targeting private and public investment into chips and AI to the tune of ¥101.6 trillion through March 2041, without giving a breakdown on how much would come from government coffers.

“The Hiroshima factory’s strength lies in its ability to quickly deliver cutting-edge and high-performance products to customers,” said Kota Nosaka, representative director of Micron’s Japan unit. “Creating next-generation chips here is directly tied to Micron’s strategy.”

Micron took possession of the Hiroshima factory when it acquired bankrupt Japanese DRAM maker Elpida Memory in 2013 (yes, there is a downside to the memory cycle too, as the world will soon realize).

Japan is home to many corporate linchpins in advanced chip materials and gear, but it has largely ceded leadership in finished semiconductors. Roughly 80% of chip materials the Hiroshima factory needs now comes from Japan, Nosaka said.