Micron Technology has begun a ¥1.5 trillion expansion of its factory in Hiroshima, Japan, to produce advanced memory chips essential for AI processors. This significant investment aims to ramp up production of high-bandwidth memory, with shipments projected to begin around summer 2028. The Japanese government is supporting this endeavor with substantial funding, allocating up to ¥500 billion to assist in covering the costs. This move aligns with a global trend of memory manufacturers increasing capacity to meet the surging demand for artificial intelligence technology. Micron is also expanding its operations in the United States with new fabs in Boise and Syracuse. Other major memory makers like SK Hynix and Samsung Electronics are similarly boosting their manufacturing capabilities. The Hiroshima facility is particularly important as it's where Micron produced its first high-bandwidth memory wafer. Japan's proactive support for Micron, the sole domestic DRAM producer, underscores its strategic focus on regaining leadership in the semiconductor sector. The Japanese government has committed significant funds to support semiconductor and AI development, viewing it as crucial for national security. While Japan has strong capabilities in chip materials, it has a limited presence in finished semiconductor manufacturing, with the Hiroshima factory sourcing about 80% of its materials domestically.