TOKYO - U.S. chip supplier Micron Technology Inc is set to invest 800 billion yen ($6.99 billion) in building a new factory in Hiroshima, western Japan, the Nikkan Kogyo newspaper reported on Wednesday.

Micron's plant is likely to specialise in DRAM memory chips which are widely used in data centers, and is due to start operating by 2024, it said.

The report comes as strong demand from automakers and tech companies have contributed to a severe global chip shortage. Taiwan chip giant TSMC announced plans last week to build a plant in Japan, and media reports have said the Japanese government was ready to help pay for its investment.

  - Reuters