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Micron Memory Japan


Micron Memory Japan, K.K. (MMJ) is a wholly owned subsidiary of the U.S.-based Micron Technology, Inc., specializing in the design, development, and manufacture of dynamic random-access memory (DRAM) semiconductors. Formed through Micron's acquisition of the insolvent Elpida Memory, Inc. on July 31, 2013, MMJ assumed control of Elpida's key assets, including its primary fabrication facility in Hiroshima, Japan, and was officially renamed from Elpida on February 28, 2014. As the sole DRAM producer in Japan, MMJ plays a pivotal role in Micron's global supply chain, employing over 4,000 engineers and technicians and benefiting from more than $13 billion in investments by its parent company since the acquisition. The Hiroshima Plant serves as MMJ's core manufacturing hub, focusing on advanced DRAM processes and poised to integrate extreme ultraviolet (EUV) lithography as the first such implementation in Japan for production-scale semiconductor fabrication. Recent expansions include plans for a new DRAM facility at the site, targeted for operation by 2027, supported by substantial Japanese government subsidies totaling up to ¥536 billion to enhance capacity for next-generation memory critical to data centers and high-performance computing. These developments underscore MMJ's strategic importance in addressing global demand for innovative memory solutions amid intensifying competition in the semiconductor industry.

History

Formation as NEC Hitachi Memory and Elpida Rebranding (1999–2000s)

In late 1999, Corporation and Ltd. merged their dynamic random-access memory (DRAM) operations into a amid a global DRAM market downturn characterized by oversupply and plummeting prices, which had eroded profitability for Japanese producers facing aggressive competition from South Korean firms like . The agreement was announced on November 29, 1999, leading to the establishment of NEC-Hitachi Memory, Inc., in December 1999, with operations set to begin in April 2000; the venture integrated the two companies' DRAM design, development, and production assets to achieve and streamline costs without fully relinquishing parental control. On September 28, 2000, was rebranded as Elpida Memory Inc., marking its transition toward greater operational independence while retaining 50-50 ownership by and ; this move aimed to consolidate Japanese DRAM expertise into a unified entity capable of challenging dominant international rivals through focused innovation and recovery. The name "Elpida," meaning "" in , underscored ambitions to revitalize Japan's position in the commoditized sector, where pricing pressures had forced prior consolidations. Elpida began independent operations emphasizing high-density memory production for and computing applications. In the early 2000s, as demand rebounded with rising needs for and mobile devices, Elpida pursued aggressive capacity expansion, announcing on November 28, 2000, the of a 300mm-wafer fabrication adjacent to NEC's plant to enable lower-cost, higher-volume production of advanced chips. commenced in January 2001, with initial output projected for the first half of 2002 at a monthly capacity of 20,000 wafers, supporting products like the 256Mb devices developed earlier that using a 0.11-micron for improved and . These investments leveraged the period's market upcycle to position Elpida as a volume competitor, though they required substantial capital from its parent companies amid ongoing industry cyclicality.

Growth, Challenges, and Bankruptcy (2000s–2012)

During the mid-2000s, Elpida Memory experienced revenue growth driven by demand for in personal computers and consumer electronics, achieving its first full-year profit in fiscal 2004 with sales of ¥207 billion and contributing to subsequent gains. By fiscal 2005, the company forecasted sales of ¥260 billion, reflecting expansion in production capacity and market positioning as Japan's sole dedicated producer. This period marked a peak, with Elpida capturing approximately 16.6% of global revenue in 2006, trailing only . However, intensifying competition from larger rivals and Hynix eroded Elpida's position amid DRAM's commoditization, characterized by cyclical oversupply, pricing volatility, and aggressive capacity expansions that depressed margins across the industry. Elpida's declined as it struggled against these incumbents' scale advantages in cost reduction and volume production, compounded by persistent industry overcapacity that led to repeated price collapses. The appreciation of the further undermined export competitiveness, raising the effective cost of Elpida's chips in dollar-denominated global markets and exacerbating losses, as highlighted by company executives who described the as an insurmountable barrier. Efforts to diversify beyond standard , including partnerships for advanced processes like copper low-k integration with UMC and investments from for DDR2 ramp-up, yielded limited relief amid ongoing deficits. These initiatives failed to offset core business pressures, culminating in Elpida's filing for protection on February 27, 2012, with liabilities totaling ¥448 billion. The insolvency stemmed directly from accumulated debts tied to capital-intensive fabs and inability to sustain profitability in a market dominated by fewer, more efficient players.

Acquisition by Micron Technology and Integration (2012–Present)

In July 2012, Micron Technology announced its agreement to acquire the assets of bankrupt Elpida Memory for approximately $2.5 billion, consisting of $754 million in cash and $1.75 billion in installment payments, to expand its DRAM production capacity and integrate Elpida's Hiroshima fabrication facility into its global operations. The deal, which positioned Micron as the second-largest DRAM supplier worldwide post-acquisition, faced regulatory scrutiny but ultimately closed on July 31, 2013, granting Micron full equity control of Elpida and enabling the transfer of its Japanese manufacturing expertise to support U.S.-led advancements in memory technology amid strengthening bilateral semiconductor alliances. Following the closure, Micron initiated operational , including optimizations such as approximately 1,500 job reductions globally—about 5% of its total employees—through , voluntary buyouts, and layoffs completed by 2014, aimed at enhancing efficiency and aligning Elpida's facilities with Micron's supply chain for DRAM production. Elpida was formally rebranded as Micron Memory Japan on February 28, 2014, marking its full integration as a focused on advanced DRAM development and , which contributed to Micron's improved market positioning without reliance on ongoing Japanese government bailouts that had previously burdened Elpida. By 2023, Micron Memory Japan had stabilized output and pursued expansions, including the introduction of (EUV) at the Hiroshima fab to enable production of next-generation 1γ DRAM starting in 2025, supported by Japanese subsidies exceeding $1.3 billion for advanced tooling and capacity upgrades. These efforts included hiring over 300 new college graduates in during 2025 to staff expanded operations, reflecting private-sector-driven revival of the site's capabilities for high-bandwidth memory and other cutting-edge products. Further investments, backed by up to $3.6 billion in additional government funding announced in 2025, aim to scale output to 40,000 per month by 2030, underscoring Micron's strategy to leverage Japanese precision manufacturing for global competitiveness.

Operations

Products and Manufacturing Focus

Micron Memory Japan (MMJ) specializes in the production of (DRAM) chips, with a core focus on modules tailored for high-performance applications in servers, mobile devices, and systems. These include low-power (LPDDR) variants such as LPDDR5X, which support flagship smartphones and AI-enabled by delivering speeds up to 10.7 Gbps and power efficiency improvements of over 20% compared to prior generations. of 1γ-node LPDDR5X began in the third quarter of 2025 at MMJ facilities, enabling thinner packaging and enhanced AI processing capabilities for mobile platforms. Following Micron Technology's acquisition of Elpida Memory in 2012 and subsequent integration by 2013, MMJ transitioned from manufacturing standalone chips under the Elpida brand to contributing specialized outputs within Micron's broader ecosystem. This shift emphasized collaborative production of high- memory (HBM), critical for AI accelerators and data centers, with MMJ's operations ramping HBM capacity to 25,000 wafers per month by late 2024 to meet surging demand. HBM stacks from MMJ support configurations like 8-high 24GB modules with bandwidth exceeding 1.2 TB/s, leveraging advanced stacking for and graphics applications. MMJ's manufacturing employs leading-edge processes, evolving from 1z-nm class —where over 50% of capacity was allocated to 1Z as of 2022—to the 1γ (1-gamma) introduced for volume shipment in early 2025, incorporating (EUV) lithography for denser bit integration and up to 20% power reductions. Output scales with global demand cycles, with projections of market tightness persisting through 2026 due to AI-driven needs, prompting MMJ to prioritize high-margin products like HBM and LPDDR5X over commoditized segments. This focus has positioned MMJ as a key in Micron's strategy for advanced , yielding higher densities and cost efficiencies tied to process advancements.

Research, Design, and Technological Capabilities

Micron Memory Japan's research and design activities play a pivotal role in advancing Micron Technology's and flash innovations, with Japanese facilities serving as core hubs for process technology development and integration. These efforts emphasize overcoming physical scaling limits in fabrication, such as reducing feature sizes to increase memory density while maintaining reliability through optimized and material engineering. In particular, the integration of (EUV) in Japan addresses constraints in patterning finer geometries, enabling higher densities without proportional increases in power consumption or defect rates. A key focus is the 1γ (1-gamma) process node, which leverages EUV for enhanced precision in critical layers, resulting in approximately 15-20% improvements in power efficiency and performance over prior nodes through refined cell architectures and interconnects. Micron initiated pilot production of 1γ using EUV tools installed in in 2024, with volume manufacturing scheduled for 2025 at the Hiroshima facility, marking the first domestic application of this technology for memory production. These advancements prioritize empirical validation of enhancements via tweaks, such as improved etch uniformity and defect mitigation, over unsubstantiated scaling projections. In flash design, Micron Memory Japan's operations contribute to controller and stacking innovations, supporting storage solutions that extend endurance and throughput amid layer count escalations beyond 200 levels. This work aligns with global R&D roadmaps, where Japanese teams refine error correction and wear-leveling algorithms grounded in real-world data, ensuring robust performance in high-density applications. Overall, these capabilities underscore a commitment to causal drivers of progress, including resolution and material throughput, rather than relying on industry hype for node transitions.

Workforce and Organizational Structure

Following Micron Technology's acquisition of Elpida Memory in 2012, the Japanese subsidiary—renamed Micron Memory Japan—experienced a transition from Elpida's pre-bankruptcy of 3,173 employees to a more integrated operation within Micron's global framework, emphasizing through centralized processes and specialized roles. By 2023, the Japan-based had expanded to over 4,000 engineers and technicians, supporting advanced production while leveraging Micron's streamlined management to enhance productivity amid rising demand for memory chips. The organizational structure operates hierarchically under Micron's U.S. headquarters, with local operations in and other sites managed by a combination of expatriate and Japanese executives to align with global standards while accommodating regional expertise. Key includes Joshua Lee as Vice President overseeing Micron Memory Japan from Hiroshima, alongside Japanese nationals in senior technical roles such as Tadashi Onodera, Vice President of Engineering. This setup facilitates direct reporting to Micron's executive team, including global operations leads, ensuring cohesive decision-making across R&D, manufacturing, and functions. To build capabilities in advanced technologies and address industry-wide talent shortages, Micron Memory Japan invests in targeted programs, including the UPWARDS initiative—a U.S.-Japan university partnership launched in 2023 involving 11 institutions to develop skills in and related fields. These efforts, which include design for emerging technologies and hands-on , contribute to employee retention by upskilling existing staff and attracting new hires for roles in fabs. Ongoing for positions in underscores a focus on sustaining depth for next-generation memory production.

Facilities and Locations

Primary Manufacturing Sites

The Hiroshima facility in Saeki-ku, , operates as Micron Memory Japan's principal fabrication plant for (DRAM) production, inherited from Elpida Memory and upgraded post-2012 acquisition to handle advanced processes on 300 mm wafers. It includes cleanroom infrastructure supporting development and initial production ramps for leading-edge nodes such as 1α, with ongoing enablement of additional space to enhance capacity for high-volume manufacturing of DRAM dies. The Hashimoto Engineering Center, located at 3-1-35 Minami-Hashimoto, Chuo-ku, Sagamihara-shi, , functions as a key support site for manufacturing operations, housing research, development, and testing facilities that include pilot lines for and prototyping prior to full-scale fab integration. This center facilitates iterative testing of processing techniques and yield optimization, complementing the Hiroshima fab's high-volume output by addressing engineering challenges in DRAM scaling. Historically, Micron Memory Japan's sites transitioned from 200 mm —prevalent in Elpida's early operations—to 300 mm wafers by the mid-2000s, enabling higher throughput and aligned with global standards, though specific monthly wafer starts at these facilities remain proprietary and undisclosed in public filings. The plant's infrastructure emphasizes contamination-controlled environments critical for sub-10 nm yields, while Hashimoto's role ensures reliability through specialized testing apparatuses.

Design and Administrative Offices

Micron Memory Japan's administrative headquarters is located in the Sumitomo Seimei Yaesu Building, 3F, 2-1 Yaesu 2-Chome, Chuo-ku, 104-0028. This facility handles core administrative responsibilities, including executive oversight, financial management, sales operations, and liaison with Micron Technology's international divisions to align Japanese activities with . Separate from manufacturing, design offices support intellectual property development in memory technologies. The Kamata Office in Ota-ku, Tokyo, concentrates on NAND flash memory device engineering, including development of next-generation architectures through collaboration with domestic and overseas teams. In , the Hashimoto Engineering Center at 3-1-35 Minamihashimoto, Chuo-ku, Sagamihara-shi, functions as a hub for specialized support. This site employs engineers focused on DRAM product validation, system-level testing for low-power devices like , and process-related advancements, contributing to prototyping and qualification without production-scale fabrication.

Expansion Projects and Infrastructure

Micron Memory Japan announced a ¥1.5 trillion investment in its Hiroshima facility, targeting completion by the end of fiscal 2029, to bolster production of advanced (DRAM). This expansion focuses on deploying (EUV) equipment, positioning the site as Japan's first for such technology in high-volume DRAM manufacturing. EUV tools became operational at the fab in 2024, enabling the 1γ process node with anticipated mass production of next-generation DRAM chips by 2027. The project includes scaling capacity to 40,000 per month to support high-volume output of cutting-edge memory for applications like systems. Infrastructure enhancements encompass facility expansions necessary for sustained operations at advanced scales, aligning with Japan's ecosystem initiatives such as the project, which fosters shared advancements in and supply chain capabilities despite focusing on logic chips. These developments aim to secure domestic production resilience amid global demand surges.

Strategic and Economic Role

Investments and Government Support

The Japanese government has provided substantial subsidies to Micron Memory Japan (MMJ), primarily through the Ministry of Economy, Trade and Industry (METI), to bolster domestic production capacity at the facility as part of a broader national strategy to secure supply chains amid geopolitical tensions. In September 2025, METI approved up to ¥536 billion (approximately $3.6 billion) in subsidies to support , , and of advanced nodes, including 1-gamma technology targeted for 2027 rollout, covering roughly one-third of Micron's planned ¥1.5 trillion investment in the site. This follows prior allocations, such as ¥192 billion ($1.3 billion) in October 2023 for fab expansion and ¥476 billion ($320 million) in 2022 for equipment upgrades, bringing cumulative support to over ¥500 billion since Micron's 2013 acquisition of Elpida . These funds are explicitly linked to objectives, aiming to reduce reliance on foreign suppliers like South Korea's and , which dominate over 70% of global output. Micron has committed private capital expenditures matching or exceeding public contributions, with the ¥1.5 trillion Hiroshima outlay representing a significant portion of its global DRAM scaling efforts driven by AI-driven demand recovery. Company projections indicate return on investment through elevated memory pricing—DRAM ASPs rose 30-40% in 2024-2025 amid data center expansions—potentially yielding positive cash flows by late 2026, though cyclical downturns remain a risk absent sustained high-bandwidth memory (HBM) adoption. This public-private model has causally accelerated R&D timelines, enabling MMJ to integrate extreme ultraviolet (EUV) lithography for sub-10nm processes faster than unsubsidized timelines might allow, as evidenced by Micron's parallel U.S. investments. Comparisons to Micron's unsubsidized or less-supported U.S. facilities, such as those in , and , highlight potential efficiency variances: U.S. sites have achieved higher yields in legacy nodes without equivalent per-fab subsidies pre-CHIPS Act, suggesting Japanese aid mitigates capex barriers but risks overcapacity if market recovery falters, as seen in Japan's 2010s DRAM consolidation post-Elpida bankruptcy. While subsidies reduce financial risk and spur technological catch-up—evident in MMJ's planned 1-gamma ramp—they foster dependency, potentially distorting allocation away from purely market-viable projects, unlike the profit-driven expansions at U.S. fabs where private ROI thresholds dictate pace. Empirical data from global peers indicates subsidized fabs often underperform on cost metrics by 10-20% due to bureaucratic oversight, though Japan's focus on DRAM specialization may yield strategic gains in supply resilience.

Contributions to Global Semiconductor Supply Chain

Micron Memory Japan's (MMJ) Hiroshima fabrication facility plays a key role in producing (DRAM) chips, supporting global demand in high-growth sectors such as (AI) infrastructure and . The plant, originally from Micron's 2013 acquisition of Elpida Memory, focuses on advanced DRAM nodes critical for data centers, , and vehicle systems, where reliable memory supply is essential amid surging AI-driven needs. In September 2025, Japan's Ministry of Economy, Trade and Industry pledged up to ¥536 billion ($3.6 billion) in subsidies to expand the facility, enabling Micron to invest approximately ¥1.5 trillion toward of next-generation 1-gamma process DRAM by 2027, thereby enhancing capacity for AI accelerators and server applications. MMJ's operations aid in diversifying the supply chain away from heavy reliance on , providing redundancy as U.S.- tensions escalate. With Micron curtailing its chip sales in following a 2023 review ban that blocked recovery of that market segment, Japan-based production serves as a strategic alternative within allied territories, aligning with frameworks like the U.S.- Chip 4 cooperation to secure non-Chinese manufacturing for advanced memory. This positioning helps mitigate risks from export controls and geopolitical restrictions, as evidenced by Micron's October 2025 decision to exit chip supply in , redirecting emphasis to facilities in and other diversified sites. Post-2020 supply disruptions, including and the global that severely impacted Japan's automotive sector, MMJ has contributed to improved resilience through expanded output and government-backed upgrades. These efforts, part of Japan's broader push to reclaim semiconductor competitiveness—from a 50% global in the to under 10% today—have helped stabilize availability, reducing vulnerability to single-region bottlenecks in . By 2025, such investments are projected to bolster Japan's production share, fostering a more distributed global network less prone to pandemic-era halts in assembly and raw material flows.

Technological Innovations and Achievements

Micron Memory Japan's Hiroshima facility pioneered the integration of (EUV) in DRAM manufacturing starting in 2023, allowing for sub-10nm node scaling that reduces transistor leakage currents by enabling precise patterning of features below 20nm half-pitch, thereby sustaining amid physical scaling barriers. This advancement supports lower defect rates through improved resolution, with Micron reporting successful ramps in advanced nodes. The facility contributes to Micron's 1γ (1-gamma) process technology, deployed in 2025 for high-density modules, which delivers over 20% power efficiency gains over prior 1α nodes by optimizing structures and reducing standby leakage via high-k dielectrics and fin-like channel designs. These improvements address thermal and electrical limits in dense arrays, enabling sustained performance in power-constrained environments like accelerators. In October 2025, Micron introduced the 192GB SOCAMM2 module using stacked LPDDR5X DRAM fabricated with 1γ technology at , achieving higher densities through (TSV) stacking that circumvents planar scaling constraints and yields more than two-thirds greater efficiency in data throughput per watt compared to non-stacked predecessors. This innovation facilitates compact, low-power solutions for data centers, with the modular form factor supporting scalable bandwidth up to 12.8 GT/s.

Challenges and Controversies

Financial and Operational Setbacks

Elpida Memory filed for protection on February 27, 2012, reporting liabilities of 448 billion yen (approximately $5.6 billion), marking the largest such filing for a manufacturer at the time. The collapse stemmed from sustained operating losses driven by sharp declines in prices, exacerbated by global overcapacity and the nature of memory chips, which Elpida failed to counter through sufficient cost reductions or differentiation despite heavy investments in production capacity. A prior government and bank in 2009, totaling 140 billion yen in aid and loans, had provided temporary relief but proved insufficient as the company could not achieve the scale needed to weather price cycles. Micron Technology completed its acquisition of Elpida in July 2013 for roughly 200 billion yen ($2.5 billion), structured as 60 billion yen in cash and the remainder in interest-free notes to creditors, absorbing Elpida's facilities including the Hiroshima plant. The deal entailed significant integration expenses, including capital expenditures to upgrade Elpida's assets and align them with Micron's operations, which strained short-term finances amid ongoing DRAM market volatility. Following the acquisition, Micron reduced its global workforce by about 1,500 positions in August 2013, targeting redundancies from the merger while preserving core manufacturing capabilities in Japan. Operational challenges persisted in Micron's Japanese facilities, particularly at the former Elpida site, where expansions encountered delays and internal inefficiencies. In 2023, despite announcing investments of up to 500 billion yen for advanced equipment like EUV , Micron executed substantial job cuts at the plant, reflecting difficulties in balancing with cost control amid fluctuating demand. Plans for an additional fabrication facility in were subsequently postponed until 2027, introducing further uncertainties to recovery timelines and underscoring risks of overinvestment in a cyclical industry. These setbacks highlighted persistent debt servicing from the acquisition—effectively rolled into Micron's —and the challenges of achieving profitability in commoditized segments without rapid synergies.

Geopolitical and Regulatory Pressures

In May 2023, China's conducted a cybersecurity review of Micron Technology's products sold in the country, determining that they posed "serious risks" to critical information infrastructure and , resulting in a ban on their procurement by operators of such infrastructure. This measure effectively excluded Micron's () and server-grade products from key sectors, interpreted by analysts as a retaliatory response to U.S. export controls on advanced semiconductors to . The ban contributed to a sharp decline in Micron's revenue share, dropping from approximately 25% of total revenue in fiscal year 2022 to about 10% over the subsequent 12 months, with (excluding ) generating $2.64 billion or 7.1% of fiscal 2025 revenue. By October 2025, the ongoing effects prompted Micron to halt shipments of chips to , effectively exiting that segment after failed recovery efforts, while maintaining sales in less restricted areas like automotive and mobile sectors. This decision underscored the deepening U.S.- divide, with Micron's exposure—once a major market for center expansion amid growth—now minimized to mitigate further regulatory reprisals. For Micron Memory Japan (MMJ), a key production hub, these pressures accelerated diversification away from China-dependent supply chains, leveraging Japan's strategic position to offset lost estimated at over 15 percentage points in affected segments. U.S.-Japan semiconductor cooperation, aligned with the CHIPS and Science Act's goals of , has positioned MMJ favorably amid risks from potential disruptions, where over 90% of advanced logic chips are produced. ’s government-backed investments, including subsidies for Micron's facility expansions targeting next-generation by 2026, aim to reduce global reliance on Taiwan-based foundries like , enhancing redundancy against geopolitical flashpoints. These alignments counter escalations by fostering allied manufacturing hubs, with MMJ's role in high-bandwidth (HBM) production helping Micron capture redirected demand from de-risked supply chains.

Criticisms of Subsidies and Market Dependencies

Critics contend that Japanese government subsidies to the , including those supporting Micron Memory Japan, foster inefficiency by artificially sustaining operations that might otherwise fail under market pressures. Elpida Memory, acquired by Micron in and rebranded as Micron Memory Japan, received 140 billion yen in financial aid and loans from public and private sources in 2009 amid slumping prices, yet declared in February 2012 with liabilities exceeding 448 billion yen. This episode illustrates how subsidies can delay necessary restructuring rather than resolve competitive shortcomings, such as Elpida's inability to pivot toward high-margin mobile segments dominated by rivals like . Observers have noted that such aid does not inherently ensure viability, as evidenced by Elpida's post-bailout collapse despite government backing. Recent subsidies to Micron's Hiroshima facility—330 billion yen approved in October 2023 for DRAM capacity expansion—have drawn parallel scrutiny, with economists arguing they contribute to a global "subsidy race" that distorts capital allocation and encourages overcapacity in an already consolidated sector. These interventions risk propping up facilities vulnerable to technological shifts or cost disadvantages, echoing broader concerns that state support erodes incentives for and . Analyses highlight potential from free-market dynamics, where subsidies prioritize national prestige over rigorous return-on-investment assessments, potentially yielding lower economic multipliers compared to unsubsidized private ventures. The market's oligopolistic structure further compounds these vulnerabilities, as Micron Memory Japan's output depends heavily on a narrow set of hyperscale buyers whose decisions drive extreme cyclicality. Hyperscalers, including operators of data centers, represent over 37% of global demand, rendering producers like Micron susceptible to synchronized inventory adjustments that trigger sharp price swings—such as the 24% contraction in total markets forecasted for certain downturn years. This buyer concentration amplifies beyond historical norms, with mini-cycles becoming more frequent as hyperscaler expansions in dictate supply-demand imbalances. Debates over public versus investment underscore efficacy gaps, with private-led efforts often achieving superior adaptability in semiconductors; for instance, U.S. R&D constitutes roughly 75% of total spending and correlates with sustained absent subsidy distortions. Elpida's subsidized persistence contrasted with Micron's post-acquisition efficiencies suggests discipline outperforms state props, though subsidy advocates cite strategic imperatives like —claims tempered by historical underperformance in ROI for government-backed Japanese chip initiatives relative to organic expansions.

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