Kioxia Holdings formally announced an investment of approximately ¥5 trillion over 6 years, including at its Kitakami plant in Iwate and its plant in Mie, against a backdrop of rising AI demand. The plan is based on government support, with operations targeted to begin in 2029 and shipments in 2030.
Kioxia Holdings announced plans to invest approximately ¥5 trillion over 6 years in semiconductor plants and technology development, centered on the Kitakami Plant in Kitakami, Iwate Prefecture, and the Yokkaichi Plant in Yokkaichi, Mie Prefecture. The investment plan is intended to meet strong demand for AI-related products.
The company plans to invest approximately ¥1.8 trillion at the Kitakami Plant to expand capacity, including construction of a third building. Operations are targeted to begin in 2029, with shipments to start in 2030.
The investment is based on support from the Japanese government, and the company said at a press briefing the same day that it expects support equivalent to approximately one-third of the total investment. President Hiroo Ota (太田裕雄) and SanDisk CEO David Goeckeler (デービッド・ゲックラー) disclosed the plan after visiting the prime minister.
The company’s capital investment plan for the current fiscal year is approximately ¥450 billion, up about 60% from the previous fiscal year, while the three-year average is expected to remain at approximately ¥470 billion. Demand for NAND flash memory for long-term storage applications is expected to rise on the back of AI demand, although the company continues to take a cautious stance toward economic risks.
As for the market reaction, reports said the share price responded temporarily following news of the capacity expansion at the Kitakami Plant. The company’s market capitalization exceeded ¥60 trillion at one point in the past, and its shares had also risen significantly amid the AI boom.