Solid-state memory makers were later to feel the benefits of the artificial intelligence boom than their counterparts in the DRAM space, but they weren’t about to miss it. Kioxia and Sandisk plan to spend $31.4 billion to build new NAND production lines in Japan, about one-third of which will be located at the Kitakami plant.
Image source: Kioxia
As early as June this year, Kioxia president Hiroo Ota admitted at a meeting with investors that the company was considering building a new factory, which is expected to be operational in 2029. The memory maker even managed to place orders with suppliers of equipment it might need for the new production line. The new factory will be the third building in the KIOXIA complex located in Kitakami, Iwate Prefecture. The company plans to start producing NAND memory in the new venture to meet the needs of server infrastructure.
In Japan, Kioxia produces solid-state memory with the participation of Sandisk and has established a joint venture with Sandisk. Over the next six years, the two companies will spend a combined $31.4 billion to expand memory production in Japan. The partners are counting on the Japanese government’s support for the new plan, for which they met with Japanese Prime Minister Sanae Takaichi this week. Japan’s Ministry of Economy, Trade and Industry is prepared to provide appropriate subsidies, covering one-third of the cost of Kioxia’s northbound plan. Kioxia expects to increase its capital spending 60% to $2.8 billion in the current fiscal year ending next March and keep it at slightly higher levels over the next three years.
Last quarter, Kioxia’s revenue ranked fourth in the world among NAND suppliers, second only to Micron Technology of the United States. The Japanese manufacturer’s financial performance is accelerating amid the artificial intelligence boom. Second-quarter revenue increased 80% to $10.72 billion, but its global market share dropped to 13.6%. Kioxia’s manufacturing base in Mie Prefecture will focus on producing solid-state memory for consumer devices including smartphones, but the factory in Iwate Prefecture will be used to meet demand in the server field.
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