Micron to build $ 7 billion factory in Japan to expand DRAM production – report

Micron Technology’s SSD for data center customers is showcased at a product launch event in San Francisco, USA on October 24, 2019. REUTERS / Stephen Nellis

TOKYO, Oct.20 (Reuters) – US memory chip maker Micron Technology Inc (MU.O) to build a new factory at its Japanese production site in Hiroshima at a cost of 800 billion yen ($ 7.0 billion) , reported the Nikkan Kogyo newspaper. Wednesday.

The new facility will manufacture DRAM chips, which are widely used in data centers, with production expected to begin in 2024, the report said, without citing any sources.

Micron officials in Japan were not immediately available for comment.

The COVID-19 pandemic stay-at-home demand for electronic devices is causing a shortage of memoryless chips that has forced some manufacturers, such as car makers and smartphone makers, to cut production. It has also reduced sales of DRAM memory chips, but some industry observers expect demand to rebound through expansion in data centers.

The report comes after chip giant Taiwan Semiconductor Manufacturing Co. (TSMC) (2330.TW) last week announced plans to build a plant in Japan, which media reports may be partially funded by the government. Japanese.

Japan wants to attract chipmakers to the country to ensure that its companies have easy access to the semiconductor supplies needed to keep its economy competitive.

Micron, which also produces slower but cheaper NAND memory chips for the data storage market, manufactures 300-millimeter DRAM semiconductors at its plant in Hiroshima and has a research and development center there.

($ 1 = 114.5100 yen)

Report by the Tokyo press room; Editing by Rashmi Aich and Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.

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