Kioxia and SanDisk Build AI Memory Plant in Japan

Kioxia Holdings Corp. is constructing a new fabrication facility at its manufacturing site in Iwate Prefecture to increase production of high-density 3D flash memory chips. The expansion aims to meet sustained AI-related demand for storage and manage the massive workflows generated by AI services.

Kioxia is executing the plan alongside manufacturing partner SanDisk Corp. Both companies intend to seek subsidies from the Japanese government to fund the project. This investment follows increased competition from China's Yangtze Memory Technologies Co. and South Korean rivals, as well as rising global prices for data center storage components.

Under the new strategy, Kioxia will utilize the Iwate site for higher-end NAND chips destined for data centers. The company's Yokkaichi facility will continue to focus on consumer products, such as smartphones. Kioxia CEO Hiroo Ota and SanDisk CEO David Goeckeler are scheduled to meet with Prime Minister Sanae Takaichi to discuss the expansion.