Kioxia Bets Big on AI Memory Expansion
Japanese memory semiconductor company Kioxia will invest more than 1 trillion yen (approximately 8.6 trillion won) to expand its production facilities to respond to the demand for data center memory driven by the proliferation of artificial intelligence (AI).According to the Nihon Keizai Shimbun (Ni
Kioxia, a Japanese memory semiconductor firm, plans to invest over 1 trillion yen (approximately 8.6 trillion won) to broaden its production capacities, aiming to match the surging demand for data center memory fueled by the widespread adoption of artificial intelligence (AI). As reported by Nikkei and Bloomberg on August 27, the company intends to build a third production facility at its Kitakami plant in Iwate Prefecture, in collaboration with American memory company SanDisk.
The project is slated for commencement after 2029, with the new building set to manufacture high-performance NAND flash memory essential for AI data centers. The company's latest 10th-generation "BiCS Flash" is also intended to be part of the new production lineup.
The escalating need for data storage devices, driven by the expansion of AI infrastructure, is also contributing to rising memory prices. Kioxia is actively exploring potential equipment manufacturers for purchases and is planning to take advantage of subsidies from the Japanese government. The Japanese government has identified semiconductors as one of 17 strategic sectors for intensive development, as designated by Sanae Takaichi's administration.
This expansion comes amidst a surge in global competition among memory companies, including Samsung Electronics and SK Hynix, as they strive to satisfy the surging AI demand. Furthermore, China's Yangtze Memory Technologies Corp (YMTC) continues to strengthen its capacity, intensifying the ongoing race for market share in the global memory industry.
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