The Japan government has decided to provide large-scale support to Micron’s Hiroshima plant, and it has become clear that it aims to accelerate the establishment of a mass production system for next-generation memory that supports AI and autonomous driving.
🟦 The Ministry of Economy, Trade and Industry provides up to 536 billion yen in support to Micron Hiroshima Plant
The Ministry of Economy, Trade and Industry announced that it will subsidize up to 536 billion yen for capital investment and research and development for the Hiroshima plant of Micron Technology, a major semiconductor memory company in the United States. This support will support the mass production of high-performance memory semiconductors “DRAM”, which are essential for AI and autonomous driving. Micron will invest a total of 1.5 trillion yen to start shipping in 2028 and aim to produce 40,000 pieces per month by 2030.
- Subsidy of up to 500 billion yen, which is one-third of capital investment
- Up to 36 billion yen subsidized for the development of next-generation DRAM with low power consumption and high speed
- Shipments will begin in 2028 and reach maximum capacity in 2030
🟦 Why large-scale support now?
As demand for generative AI and autonomous driving rapidly increases worldwide, the Japan government has positioned securing semiconductor supply capacity as a top priority. Micron procures about 80% of its raw materials from Japan and is highly praised for its active efforts in human resource development. In addition, as well as support for TSMC’s Kumamoto Plant and Kioxia Yokkaichi Plant, it is also part of a policy aimed at strengthening the domestic production base and stabilizing the supply network. The total amount of such support reached up to 774.5 billion yen at Micron’s Hiroshima plant alone, making it a central part of Japan’s semiconductor strategy.
🟦 Summary
The Ministry of Economy, Trade and Industry will support Micron’s Hiroshima plant with up to 536 billion yen in capital investment and R&D to support mass production of next-generation DRAM, which is essential for AI and autonomous driving. Micron plans to invest a total of 1.5 trillion yen to start shipping in 2028 and establish a full production system in 2030.
The Japan government’s support for Micron has gradually expanded to approximately 46.5 billion yen in 2022, approximately 192 billion yen in 2023, and up to 536 billion yen reported this time. This indicates that the target of support has shifted from “strengthening the production of 1β-generation DRAM” to “introducing 1-γ generation DRAM and EUV equipment” and has shifted to more advanced technology areas.
