The global semiconductor industry is witnessing an intense expansion race, with companies like U.S.-based Micron and China's ChangXin Memory Technologies (CXMT) announcing significant capacity increases. The urgency is also palpable for South Korea's major players, Samsung Electronics and SK Hynix, as they push forward with their 'three mega projects.'
According to industry sources, Micron held a groundbreaking ceremony for a new manufacturing facility at its Hiroshima plant in Japan on July 5, officially confirming its production line expansion. The company plans to invest a total of 14.2 trillion won (approximately $10.6 billion) in equipment and research and development (R&D) over a site of about 28,000 square meters (approximately 7 acres). Additionally, Japan's Ministry of Economy, Trade and Industry has pledged support of up to 5 trillion won.
The new manufacturing facility aims to begin operations in the second half of 2028, producing next-generation DRAM and 7th generation high-bandwidth memory (HBM4E). With the development of Rapidus's 2-nanometer process and TSMC's Kumamoto plant, Japan is solidifying its next-generation semiconductor supply chain with Micron's advanced base.
Earlier this year, Micron also initiated large-scale expansions in Idaho and New York, with the New York fab being a massive project involving a total investment of 153 trillion won (approximately $115 billion). Under the U.S. CHIPS Act, the company has secured about 8.4 trillion won in federal subsidies and substantial tax incentives.
China's CXMT is also aggressively pursuing growth. Last month, the company announced its goal to become the third-largest player in the global DRAM market by 2030 and plans to make significant investments in Shanghai this fall. The existing three fabs in Hefei and Beijing are deemed insufficient to meet rising demand.
CXMT intends to raise nearly 6.65 trillion won (approximately $5 billion) through an initial public offering (IPO) on the Shanghai Stock Exchange. Once the new line is operational, CXMT's monthly wafer production capacity is expected to double to 600,000 wafers.
South Korean companies are also ramping up efforts to expand production facilities. The Gwangju military airport has been selected as the site for the Honam semiconductor mega fab, which will be led by Samsung Electronics and SK Hynix. This announcement comes just a week after the government officially unveiled plans for four new fabs during a national briefing on the three mega projects. However, it has yet to be determined which of the two companies will establish operations there.
This rapid site selection and permitting process is notable, as it typically takes 5 to 7 years to break ground. The urgency reflects the government's and industry's recognition that falling behind in the global supply chain could lead to obsolescence. For context, SK Hynix's Yongin general industrial complex faced delays due to local disputes and environmental assessments, only breaking ground in February of last year after site confirmation in 2019.
Lee Jong-hwan, a professor at Sangmyung University’s Department of System Semiconductor Engineering, stated, "The government's swift site selection and administrative support are very encouraging. However, it is crucial that essential infrastructure, such as power and water, is supplied in a timely manner after securing the site, making collaboration between the relevant ministries and local governments key moving forward."
* This article has been translated by AI.
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