Micron (MU) Breaks Ground on $9B Japan Chip Plant

Micron Technology broke ground on a new $9 billion plant in Hiroshima, Japan, the company said Tuesday. The facility will produce next-generation DRAM chips, with production expected to start in 2026.

The plant is part of a broader push by Japan to rebuild its domestic chip industry. The government is covering about a third of the cost through subsidies, according to a person familiar with the matter.

Micron's Alpha Score sits at 79 out of 100, the "Strong" label, the highest among major U.S. memory makers. The score reflects the company's improving competitive position as it adds capacity outside China and Taiwan.

The Hiroshima expansion follows Micron's $15 billion U.S. fab plan announced last year. The company is racing to catch up with SK hynix in high-bandwidth memory chips used for AI data centers.

Shares of Micron have risen 68% over the past 12 months, outpacing the Philadelphia Semiconductor Index's 45% gain.