Micron Technology, a company that makes computer memory, experienced a nearly 5% increase in its stock price during early trading on Thursday. The reason for this boost is Micron’s announcement that it will introduce an advanced technology called extreme ultraviolet (EUV) in Japan. This technology will be used to produce the next generation of dynamic random access memory (DRAM).

Micron, headquartered in Boise, Idaho, stated that it is the first chip company to bring EUV technology to Japan for manufacturing. The company will be assisted by its facility in Hiroshima. Micron plans to invest up to $3.63 billion in the process over the next few years, with support from the Japanese government. The aim of this investment is to facilitate further technological advancements, particularly in emerging areas such as generative artificial intelligence applications.

Micron’s President and CEO, Sanjay Mehrotra, expressed his pride in being the first to implement EUV technology in Japan. He emphasized the significance of developing and producing 1-gamma at the Hiroshima facility. Mehrotra also acknowledged Micron’s commitment to Japan, its strong relationship with the Japanese government, and the exceptional skills of the Micron Hiroshima team.

Extreme Ultraviolet (EUV) technology is an advanced manufacturing technique used in the production of semiconductor devices, such as computer chips. It involves the use of extremely short-wavelength light, specifically in the range of 13.5 nanometers, which falls within the extreme ultraviolet part of the electromagnetic spectrum. EUV light has much shorter wavelengths than the ultraviolet light used in conventional chip manufacturing processes.

EUV technology offers several advantages over traditional lithography methods. The shorter wavelength of EUV light enables higher precision and resolution in creating smaller and more intricate circuit patterns on silicon wafers. This allows for the production of denser and more powerful semiconductor devices. Additionally, EUV technology reduces the complexity and number of process steps required in chip manufacturing, leading to increased efficiency and cost-effectiveness.

Implementing EUV technology in semiconductor fabrication requires specialized equipment and processes. It involves using a powerful EUV light source to project a pattern onto a silicon wafer coated with light-sensitive materials, known as photoresist. The pattern is transferred onto the wafer, forming the intricate circuitry and structures that make up the semiconductor device.

EUV technology represents a significant advancement in the semiconductor industry and enables the development of smaller, faster, and more energy-efficient chips. It plays a crucial role in meeting the increasing demand for higher-performing electronic devices and paves the way for future technological innovations.

Starting in 2025, Micron plans to gradually incorporate EUV technology into its manufacturing processes in Taiwan and Japan, specifically in the 1-gamma nodes.

Rahm Emanuel, the U.S. ambassador to Japan, highlighted the importance of the partnership between Micron and Japan, stating that it represents a significant advancement in securing the semiconductor supply chain. Emanuel also emphasized the potential for economic growth and security through collaboration in cutting-edge technologies.

The announcement follows reports that Japanese Prime Minister Fumio Kishida was scheduled to meet with executives from various semiconductor companies, including Micron, to strengthen cooperation in the industry.

During a press conference on Wednesday, Chief Cabinet Secretary Hirokazu Matsuno emphasized that the semiconductor supply chain cannot be established by a single country alone. He stressed the importance of collaboration with like-minded countries and regions to achieve this goal.