Memory chips: Micron invests big at Hiroshima plant for next-gen technology

Memory chips: Micron invests big at Hiroshima plant for next-gen technology

TOKYO — Micron Technology is spending over 100 billion yen ($830 million) to enable its Japanese facility in Hiroshima to mass-produce the next generation of memory chips in an attempt to take on global leader Samsung Electronics.

     The U.S. chipmaker, which bought Japan’s bankrupt Elpida Memory in 2013, is increasing its investment in production centers and research by 40% to $5.8 billion in the fiscal year ending August 2016. DRAM and NAND flash memory chips are the focus.

     Much of the investment in DRAM will be directed toward the Hiroshima plant so that it can use 16-nanometer-class technology to produce chips, the most advanced in the world. Each fabrication device will cost several billion yen, and the goal is to have mass-production processes ready by the first half of next year.

     Micron also spent around 100 billion yen in the year ended Aug. 31 to expand the Hiroshima facility. Once the technology is in place at that plant, the company is expected to make further investments at other sites, which are located in the U.S., Japan and Taiwan.

     The 16nm technology produces more chips from a single silicon wafer than the current 20nm technology, boosting productivity 20-30%. Samsung also is preparing facilities to produce the next-generation DRAMs.

     The memory chip market is highly cyclical, and prices currently are dipping thanks to poor PC sales and slowing growth in smartphones. But Micron hopes to benefit from the next upturn by investing heavily while market conditions are poor.

(Nikkei)

Memory chips: Micron invests big at Hiroshima plant for next-gen technology