Kioxia Holdings has begun construction of K3, a new building at its Kitakami Plant, and announced approximately ¥5 trillion in domestic investment, with operations targeted to begin during fiscal 2029. Meanwhile, after the share price surged on 27 August, profit-taking selling prevailed on 28 August, sending the stock lower.
On 27 August, Kioxia announced the start of construction of K3 at its Kitakami Plant and a plan to invest approximately ¥5 trillion in Japan by 2032. The share price rose 5% from the previous day to nearly ¥52,500, but reports said that profit-taking selling spread the following day, 28 August, sending the stock lower.
As part of the capacity expansion plan, Kioxia will strengthen production capacity for BiCS FLASH, its 3D flash memory, at the Kitakami Plant, with operations targeted to begin during fiscal 2029. The investment is premised on government support, and the company has outlined a policy of pursuing a major investment in Japan together with SanDisk.
The outlook for NAND supply and demand and the expansion of AI demand are affecting the share price. Although demand for SSDs for AI data centers remains firm at present, attention is warranted because expanded production capacity could create a risk of falling NAND prices over the medium to long term.
From an earnings perspective, Kioxia reported a sharp increase in profits for 2027 Q1 and announced a share buyback. While some expect capacity expansion investment to support medium- to long-term growth, the share price outlook remains uncertain, depending on the duration of the investment burden and the balance between supply and demand.