Kioxia and SanDisk announced a domestic investment plan of approximately ¥5 trillion centered on the Kitakami Plant in Iwate Prefecture, including the new K3 building. Based on government support, the plan calls for strengthening advanced memory mass-production capacity over the medium to long term through 2032.
As maintaining and strengthening the domestic production base for advanced semiconductors becomes a national strategic priority from an economic security perspective, Kioxia and SanDisk have presented a comprehensive investment plan of approximately ¥5 trillion centered on the Kitakami Plant. The plan includes construction of the new Kitakami K3 building and aims to establish mass-production capacity for ultra-high-capacity memory to meet growing AI demand as part of a long-term plan extending through 2032.
On 27 August 2026, Prime Minister Takaichi Sanae (高市早苗) met with the heads of both companies at the Prime Minister’s Office, where the plan was announced to be based on government support. The core of the investment is the Kitakami Plant’s K3 building, which includes investment of up to approximately ¥1.8 trillion, with the stated policy of strengthening the two-site domestic production structure.
Support from the Ministry of Economy, Trade and Industry has previously centered on the development of individual production lines, with the first phase in 2022 and the second phase in 2024 totaling approximately ¥200 billion to ¥400 billion. This time, reports indicate that the government is preparing to assume a total exceeding ¥5 trillion under a comprehensive support framework. The aim is to establish a structure capable of meeting memory demand in the AI era by strengthening coordination between the Kitakami and Yokkaichi plants.
The plan is intended to enhance supply-chain autonomy by promoting domestic capacity while mitigating geopolitical risks. At the same time, it incorporates a phased approach to market volatility, with the timing and scale of equipment investment to be determined incrementally based on market conditions.
Going forward, the feasibility of the long-term plan will be a focus, including the start of construction on the Kitakami K3 building, the target of beginning operations during fiscal 2029, and continued investment through 2032. These developments are attracting attention as an example of efforts to establish an advanced semiconductor supply chain domestically through public-private cooperation between Japan and the United States.