Kioxia, Sandisk Plan $31 Billion Japan Memory Chip Expansion

Trading Random
Aug 27

Kioxia Holdings Corp. and Sandisk Corp. plan to spend more than ¥5 trillion ($31.4 billion) to ratchet up production capacity in Japan, boosting output of a critical AI data center component that’s in short supply.

The Tokyo-based maker of NAND flash memory aims to invest that amount over six years, Kioxia Chief Executive Officer Hiroo Ota said on Thursday. The company intends to invest ¥1.8 trillion on a new fab in Kitakami alone. That plant will make its latest high-density 3D flash memory chips designed to help manage massive workflows generated by AI services.

Kioxia’s investment, to be carried out alongside manufacturing partner Sandisk, reflects growing pressure on the world’s largest memory chipmakers to ramp up output and ease a global crunch that’s raising the cost of electronics. Prices for memory and storage are climbing worldwide, crimping margins for companies from Nvidia Corp. to automakers and mobile device makers. In a post-earnings briefing, Nvidia executives this week warned about supply constraints and pressure on margins.

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