Micron to get $1.2bn subsidy for Hiroshima fab

Author: EIS Release Date: Oct 10, 2023

The  Japanese government has increased to $1.2 billion the subsidy it is giving Micron to build a fab in Higashihiroshima City in Hiroshima prefecture, reports the Nikkei. Previously the government offered a $300 million subsidy.

 

Micron is investing $3.35  billion in the plant which is scheduled to be running DRAM wafers in 2026 uding EUV machines.

 

 

 

The Japan government has  also allocated subsidies of up to $3 billion for a TSMC fab in Kumamoto prefecture, and a subsidy of up to $616 million for a Kioxia/Western Digital NAND fab in Mie prefecture.

 

 

The biggest chip investment by the Japanese government is Rapidus – the $36.7 billion project to develop a 2nm logic process and build a fab at Chitose City in Hokkaido Prefecture.

 

 

Micron says it will lose $4 billion in annual revenue as a result of China stopping its memories from being used in telecoms infrastructure. In calendar Q3 (Micron’s FY Q4) revenue was $4.01 billion, up from $3.75 billion q-o-q  and down $6.64 billion y-o-y for a loss of $1.43 billion.

 

Micron’s revenue for FY 2023 was $15.54 billion –  down on FY 2022’s $30.76 billion  with a 2022 FY profit of $8.68 billion sinking to a $5.83 billion loss in FY 2023.