Kioxia Invests $11.3 Billion in New Japanese Factory
Kioxia Holdings Corp., one of the world's leading memory chipmakers, is investing heavily in its Japanese operations. The company announced on August 27 that it will build a new factory at its Kitakami plant site, with partner Sandisk Corp. investing alongside it.
The total investment for this project comes to a staggering 1.8 trillion yen ($11.3 billion), which is expected to start operating in fiscal 2029. This move aims to meet the increased demand for NAND flash memory from data centers linked with generative artificial intelligence.
Kioxia's President Hiroo Ota emphasized the need for government support, stating 'In order to maintain and strengthen our international competitiveness, we will need the continued and strategic support of the government.' The company has been promised subsidies worth around 243 billion yen under Japan's ministry of trade and industry subsidy program.
This investment is part of a larger plan to invest about 5 trillion yen domestically by 2032. This new facility will be Kioxia's third domestic plant, following its existing operations in Kitakami and Yokkaichi.