Sandisk and Kioxia Plan to Invest More Than $31 Billion in Japanese Memory Plants — About 60% of What They Have Spent There in 25 Years.

Flash memory companies Sandisk (NASDAQ: SNDK) and Kioxia have announced plans to invest over $31 billion in Japan over the next six years, with the funds earmarked for expanding infrastructure at their Yokkaichi and Kitakami plants, as well as for technology development. The investment, contingent on Japanese government support, is roughly 60% of what the companies have spent in Japan over the past 25 years combined.

Despite Sandisk's CEO stating that the company is increasing supply through technology improvements instead of large capacity expansions, the new plan appears to run counter to this strategy. However, a closer look reveals that Sandisk's funding obligation is contingent upon the joint venture's own cash flow, and the $31 billion figure is a minimum estimate.

Sandisk's revenue has surged by 175% year-over-year, reaching $20.25 billion in fiscal 2026, with guidance for fiscal 2027 projecting revenue between $10.3 billion and $10.8 billion. This revenue base provides Sandisk with sufficient funding for the joint venture's expansion plan, which runs until 2032.