US Micron to Invest 5 Trillion Won in Japan... Introducing EUV Lithography Equipment

Introduction of EUV Lithography Equipment at Hiroshima Factory
Japanese Subsidies Invested in Facility Line Expansion
Cutting-Edge Semiconductor Production Starting from 2026

American semiconductor manufacturer Micron Technology plans to invest 500 billion yen (4.8443 trillion won) in Japan to introduce state-of-the-art semiconductor production facilities in Hiroshima Prefecture, the Nihon Keizai Shimbun reported on the 18th.

Sanjai Melotra, CEO of Micron Technology, attended a meeting with representatives of seven major foreign semiconductor companies at the Japanese Prime Minister's residence that morning, where he met with Prime Minister Kishida and announced the investment plan.

Sanjay Mehrotra, CEO of Micron Technology [Photo by Bloomberg]

Micron plans to introduce EUV lithography equipment, essential for ultra-fine semiconductor processes, at its Hiroshima plant by 2025 and begin advanced semiconductor production from the following year. Although the Japanese government is expected to provide partial subsidies for the equipment introduction, Micron did not disclose the specific amount of support.

CEO Melotra explained the reason for deciding to invest in Japan, saying, "We need to supply next-generation semiconductors from both Japan and Taiwan bases to meet the growing global semiconductor demand," and added, "We saw the Japanese government's support as important for developing and producing next-generation technologies."

The EUV lithography equipment that Micron plans to introduce in Japan is used in the lithography process, where light is projected to draw circuits on wafers. EUV lithography equipment has a shorter wavelength of light than conventional equipment, allowing for finer circuit patterns, making the possession of such equipment directly linked to a company's competitiveness. Accordingly, 'Rapidus,' a semiconductor joint venture company jointly funded by eight major Japanese corporations, has also been striving to secure EUV lithography equipment, signing a technology partnership with the U.S. IBM and Belgium-based research institute IMEC last November.

Bloomberg evaluated Micron's decision as the first concrete achievement by the Japanese government, which has been promoting the advancement of the semiconductor industry. Previously, the Japanese government provided subsidies of 476 billion yen to Taiwan's TSMC, the world's largest semiconductor foundry, for building a semiconductor factory in Kumamoto Prefecture.

Moreover, amid rising geopolitical tensions surrounding the semiconductor industry, Micron's investment is expected to strengthen the plans of the Group of Seven (G7) countries to reinforce a U.S.-centered semiconductor supply chain.

Akira Minamikawa, an analyst at Research Omdia, told Bloomberg, "Micron's Hiroshima plant will play a central role in the ambitions of the G7 countries to strengthen the semiconductor supply chain."