Micron Starts Monetizing Cutting-Edge Chip Production In Japan

Memory chip maker Micron Technology Inc (NASDAQ: MU) kicked off mass production of its new high-capacity low-power 1-beta dynamic random access memory (DRAM) chips at its plant in Hiroshima, Japan, Reuters reports.
The U.S. Ambassador to Japan, Rahm Emanuel, and Japanese officials attended a ceremony in Hiroshima to mark the start of the large-scale output, highlighting the growing political importance of semiconductors for the two allies.
The production of Micron's most advanced chip, which can store a third more data than older chips, comes as Japan tries to revive and modernize its once-mighty chip industry.
The Japanese government in September offered Micron 46.5 billion yen ($332 million) to boost production capacity at its plant.
In July, it gave a 93 billion yen subsidy to rival memory chip makers Kioxia Corp and Western Digital Corp (NASDAQ: WDC) to help it expand output at their joint factory in Japan.
Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) weighed expanding its production capacity in Japan to reduce geopolitical risk.
The Japanese government has allowed TSMC to expand in the country beyond a factory already under construction.
The critical Apple Inc (NASDAQ: AAPL) supplier is building its first chip-manufacturing plant in Japan, located on the southern island of Kyushu.
Price Action: MU shares traded higher by 0.46% at $63.39 in the premarket on the last check Wednesday.
Photo Via Company

See more from Benzinga