[News] HBM Supply Shortage Prompts Micron’s Expansion, Expected Schedule in Japan and Taiwan Revealed

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Earlier, a report from a Japanese media outlet The Daily Industrial News indicated that memory giant Micron planned to build a new DRAM plant in Hiroshima, with construction scheduled to begin in early 2026 and aiming for completion of plant buildings and first tool-in by the end of 2027.

According to industry sources cited by TechNews, Micron is expected to invest between JPY 600 to 800 billion in the new facility, located adjacent to the existing Fab15 facility. Initially, the new plant will focus on DRAM production, excluding backend packaging and testing, with a capacity emphasis on HBM products.

Micron’s new Hiroshima plant will be the first to adopt Extreme Ultraviolet (EUV) lithography equipment, producing new advanced 1-Gamma process DRAM developed in collaboration between Taiwan and Japan. Subsequently, it will also transition to the 1-Delta process, leading to a significant increase in EUV tool-ins and heightened cleanroom facilities.

As for Fab 15 in Hiroshima, it serves as a mass production site for HBM, handling front-end wafer production and Through-Silicon Via (TSV) processes, while back-end stacking and testing processes are managed by the Taichung back-end plant in Taiwan. Market reports cited by TechNews also suggest that due to expanding demand for HBM, Micron’s facilities in Taiwan will commence HBM production and TSV processes starting next year.

TrendForce points out that due to robust growth in the HBM market, lower production yields, larger chip sizes, and other factors, producing the same bit output in HBM requires approximately three times the wafer input compared to DDR5, potentially squeezing traditional DRAM capacity.

Given Micron’s need to accelerate its penetration into the HBM market, and with its 2025 production capacity already fully booked by customers, the construction of a new plant becomes imperative. Micron also plans to maintain its HBM product line market share at 20% to 25% by 2025, eyeing on increasing it to match traditional DRAM levels.

The new Hiroshima plant has also received subsidies from the Japanese government. In October last year, Japan’s Ministry of Economy, Trade and Industry announced subsidies totaling JPY 192 billion for Micron’s construction and equipment expenses. Additionally, subsidies of up to JPY 8.87 billion for production costs and JPY 25 billion for research and development costs were provided.

Read more

• [News] Micron Reportedly Set to Build New DRAM Plant in Hiroshima, Japan, Operational Expected by End of 2027
• [News] Micron Slightly Raises Capital Expenditure for 2024, HBM Expected to Further Drive Revenue Growth in 2025

(Photo credit: Micron)