Memory chipmaker Micron is planning to expand its operations in Hiroshima, Japan, by building a high-bandwidth memory (HBM) facility at its existing site.

According to a report from Nikkei Asia, the company is planning to invest $9.6 billion in the project, with Japan’s Ministry of Economy, Trade and Industry (METI) expected to contribute up to $3.2bn in subsidies to support the plant.

The facility will manufacture next-generation high-bandwidth memory (HBM) chips, Nikkei Asia reports, claiming the company will begin construction in May 2026, with the first shipments of HBM chips produced at the site expected from 2028.

Micron reportedly hopes the facility will allow it to catch up to its rival, SK Hynix, which is the current market leader when it comes to HBM.

Should the project go ahead, it wouldn’t be the first time Micron has benefited from Japanese government incentives aimed at boosting the country’s domestic semiconductor ecosystem.

In 2023, Micron announced plans to invest up to $3.6bn to bring extreme ultraviolet lithography (EUV) to Japan, backed by Japanese government subsidies. The company went on to deploy an EUV lithography machine at its Hiroshima site in May of this year.

According to Nikkei Asia, METI's subsidies to Micron total up to $5bn.

Also this year, Micron announced plans to invest around $7bn over the next five years to boost memory chip production in Singapore. The company announced the investment on the same day it broke ground on a new HBM advanced packaging facility in the city-state.

That fab is similarly located next to the company’s current facilities and will feature greenhouse gas abatement, water recycling, and waste circularity to align with Micron’s sustainability commitments.