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Last year, Micron unveiled plans to construct a cutting-edge DRAM factory in Hiroshima, Japan. However, the project has faced a significant two-year delay, pushing back the initial timeline for mass production of the company's most advanced memory products. Originally slated to begin mass production by the end of 2025, Micron now aims to have the new facility operational by 2027. The complexity of integrating extreme ultraviolet lithography (EUV) equipment, which enables the production of highly advanced chips, has contributed to the delay. The Hiroshima plant will produce next-generation 1-gamma DRAM and high-bandwidth memory (HBM) designed for generative AI applications. Micron expects the HBM market, currently dominated by rivals SK Hynix and Samsung, to experience rapid growth, with the company targeting a 25% market share by 2025.
The project is expected to cost between 600 and 800 billion Japanese yen ($3.8 to $5.1 billion), with Japan's government covering one-third of the cost. Micron has received a subsidy of up to 192 billion yen ($1.2 billion) for construction and equipment, as well as a subsidy to cover half of the necessary funding to produce HBM at the plant, amounting to 25 billion yen ($159 million). Despite the delay, the increased investment in the factory reflects Micron's commitment to advancing its memory technology and capitalizing on the growing demand for HBM. An indication of that is the fact that customers have pre-ordered 100% of the HBM capacity for 2024, not leaving a single HBM die unused.
View at TechPowerUp Main Site | Source
The project is expected to cost between 600 and 800 billion Japanese yen ($3.8 to $5.1 billion), with Japan's government covering one-third of the cost. Micron has received a subsidy of up to 192 billion yen ($1.2 billion) for construction and equipment, as well as a subsidy to cover half of the necessary funding to produce HBM at the plant, amounting to 25 billion yen ($159 million). Despite the delay, the increased investment in the factory reflects Micron's commitment to advancing its memory technology and capitalizing on the growing demand for HBM. An indication of that is the fact that customers have pre-ordered 100% of the HBM capacity for 2024, not leaving a single HBM die unused.
View at TechPowerUp Main Site | Source
