People exit the Micron headquarters building in Shanghai, China. Photo by ALEX PLAVEVSKI / EPA

July 5 (Asia Today) -- Japan is positioning itself as a production base for artificial intelligence memory chips by backing a major expansion by U.S. chipmaker Micron Technology, raising a new challenge to South Korea's lead in high-bandwidth memory.

Micron broke ground Saturday on an expansion of its Hiroshima plant in western Japan, according to Japanese media. The project will expand cleanroom space at Micron Memory Japan's facility in Higashihiroshima, Hiroshima Prefecture, to strengthen production capacity for next-generation DRAM and high-bandwidth memory, or HBM, used in AI servers.

The expansion covers about 28,000 square meters. Micron plans to proceed in stages and begin installing manufacturing equipment in the second half of 2028.

The project involves about ¥1.5 trillion, or about $9.2 billion, in capital investment and is expected to create more than 1,000 jobs. Japan's Ministry of Economy, Trade and Industry will provide up to ¥536 billion, or about $3.3 billion, in support for investment and research and development.