Micron Expands DRAM Empire: New Hiroshima Fab Fuelled by $1.4B Japanese Subsidy

Previous reports indicated that Micron will construct a new DRAM factory in Hiroshima Prefecture, Japan, with an investment ranging between 600 billion and 800 billion yen. The construction is scheduled to commence in early 2026, with the main building and the first batch of tools expected to be completed by the end of 2027. This facility will feature extreme ultraviolet (EUV) lithography equipment for producing DRAM chips using the 1-gamma (1γ) process.

According to TrendForce, Micron’s new factory in Hiroshima will be located near the existing Fab 15 and will focus exclusively on DRAM production, excluding backend packaging and testing. The primary production will be concentrated on HBM products. The factory will eventually transition to the 1-delta process, increasing the number of EUV lithography machines and upgrading the cleanroom facilities. The Japanese government has approved a construction subsidy of up to 192 billion yen to support Micron’s Hiroshima factory in producing next-generation chips. Additionally, there will be 8.87 billion yen in production cost subsidies and 25 billion yen in R&D cost subsidies.

Fab 15 is one of Micron’s primary production bases for HBM products, responsible for frontend wafer production and part of the through-silicon via (TSV) process, while the backend stacking and testing processes are handled by Micron’s factory in Taichung, Taiwan. The HBM market is currently experiencing robust growth, but faces challenges such as lower yield rates and larger chip sizes. Compared to DDR5, producing the same number of bits requires approximately three times the wafer area, which impacts traditional DRAM production capacity. To meet the urgent need to increase HBM shipments, Micron’s Taiwan factory will also start participating in frontend wafer production and TSV processes next year to further enhance capacity.

Considering that Micron’s HBM capacity is already booked by customers until 2025, the construction of a new factory has become imperative. Micron aims to capture 20% to 25% of the HBM market share by 2025, striving to reach a level comparable to traditional DRAM.