Kioxia President Ota (太田) denied joint production with SK hynix and stated unequivocally that NAND prices had "risen too far." The company announced an investment plan of approximately ¥5 trillion for construction of K3 at its Kitakami plant and Japan-U.S. cooperation.
Kioxia, one of Japan's leading memory chipmakers, again denied the possibility of joint production with rival SK hynix. At the same time, it said NAND flash memory prices had "already risen sufficiently" and instructed its sales team to refrain from further price increases for data center customers. Market participants were effectively doused with cold water on expectations of cooperation between South Korean and Japanese semiconductor manufacturers.
In terms of market share, the global NAND market is undergoing a shift. Samsung Electronics remains the market leader, while Yangtze Memory Technologies Co. (YMTC) has overtaken Kioxia to move into third place, intensifying competition.
Kioxia is moving ahead with an unusually large-scale capacity expansion investment. It plans to build a third building, K3, at its Kitakami plant and expand production capacity for BiCS FLASH. The company announced plans to invest approximately ¥5 trillion over the next 6 years, assuming support from the Japanese government.
The investment breakdown includes more than ¥1 trillion for a single new plant. Capital investment for FY2027 is expected to be approximately ¥450 billion, while the average annual investment over 3 years is expected to remain at approximately ¥470 billion. The plan also indicated a policy of restraining NAND market prices while positioning the company for long-term growth in AI demand.
The key market question will be whether increased production can curb excessive increases in NAND prices, depending on the persistence of demand for AI storage and the actions of competitors.