Kioxia will build a third fab within its existing site in Iwate Prefecture and work with SanDisk to meet growing demand for AI storage. Its share price rose as much as 6.9%.
Kioxia Holdings Corporation, a major Japanese storage semiconductor maker, announced plans to build a third semiconductor fab within its existing manufacturing site in Iwate Prefecture. The company said it will expand NAND flash memory production capacity jointly with manufacturing partner SanDisk to meet AI-driven demand for storage.
The new fab is planned to produce the latest-generation 3D flash memory chips for high-density NAND production, and Kioxia and SanDisk made a courtesy visit to Prime Minister Sanae Takaichi (高市 早苗) to announce the expansion plans. The market has attributed the backdrop to a global supply-demand imbalance and increased demand from AI inference workloads.
The new Iwate fab will specialize in producing high-density NAND chips for data centers, while the Yokkaichi plant in Mie Prefecture will continue producing chips for consumer applications, strengthening the division of production. BiCS10 shipments are also progressing, with 1Tb TLC products expected to be supplied from Iwate Fab2.
Market research has pointed to YMTC's expanding global market share, while the long-term sustainability of AI storage demand and the presence or absence of long-term contracts are seen as factors that will determine the investment outlook. The company also outlined its policy on applying for government subsidies, and efforts to reduce investment costs continue against the backdrop of efforts to revive Japan's semiconductor industry.