Kioxia dismisses SK Hynix tie-up and vows to ease chip price rises
Memory chipmakers are embarking on costly production capacity increases to meet soaring orders from AI service providers.
Kioxia's chief executive dismissed the possibility of expanding business ties with SK Hynix, while vowing to control the escalating memory chip prices that are threatening long-term artificial intelligence demand. The memory chip manufacturers are investing heavily in expanding production capacity to meet the surge in orders from AI service providers, leading to drastic price hikes of up to double or triple digits.
Some investors, including the chairman of SK Hynix's parent company, SK, have suggested that joint manufacturing partnerships could help alleviate the financial burden of substantial capital investments. However, Kioxia's CEO Hiroo Ota emphasized that any closer collaboration with SK Hynix would face antitrust challenges and would be challenging to align with Kioxia's joint manufacturing ventures with SanDisk. To counteract the runaway memory prices, Kioxia must seek alternative strategies.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
