US semiconductor giant Micron Technology (NASDAQ:MU) has started its expansion work on a factory in Japan that will mass‑produce cutting‑edge semiconductors for generative AI and other applications.

The Boise, Idaho‑based company will invest about $9.3 billion in factory expansion, NHK World reported, citing Japan’s Ministry of Economy, Trade and Industry. The ministry will provide about $3.3 billion in subsidies, Japan’s international public broadcasting service reported.

Construction is expected to proceed in phases at the company’s new Hiroshima Prefecture plant in western Japan. The installation of semiconductor manufacturing equipment is scheduled to begin in the first half of 2028, according to NHK World.

Micron CEO Sanjay Mehrotra joined senior Japanese officials on Saturday as the company broke ground on its new Hiroshima plant. Economy, Trade and Industry Minister Akazawa Ryosei attended the ceremony, underscoring Tokyo’s commitment to expanding advanced semiconductor manufacturing capacity.

"When American boldness meets Japanese craftsmanship, you do not get a compromise," Mehrotra said during the ceremony. "You get the best in the world."