KIOXIA to Invest 870 Billion Yen in Iwate to Build AI Memory Plant

[Financial News, Tokyo = Correspondent Seo Hye-jin] Japanese memory chip maker KIOXIA Corporation will invest more than 1 trillion yen, or about 870 billion won, to build a new production building in Iwate Prefecture to meet surging memory demand driven by the spread of artificial intelligence (AI).
According to the Nihon Keizai Shimbun on the 27th, KIOXIA executives will visit the Japanese prime minister's office later in the day to formally announce the plan to build the new production building. In June, KIOXIA President Hiroo Ota said at an investor briefing that the company had "started discussions" on the new facility, which is targeted to begin operations after 2029.
The new facility will mass-produce NAND flash memory, which is used for long-term data storage. KIOXIA currently has two production bases in Japan: the Yokkaichi Plant in Mie Prefecture and the Kitakami Plant in Iwate Prefecture. The new building will be the third production facility on the Kitakami Plant site.
KIOXIA has already begun discussions with some partner companies, including semiconductor equipment makers, about purchasing equipment for the new facility. The company is also expected to use subsidies from METI to ease the burden of the large-scale investment. U.S. memory chip maker SanDisk Corporation will also take part in the investment.
KIOXIA ranks third in the global NAND flash market by revenue, behind Samsung Electronics and SK hynix. As Samsung Electronics and SK hynix have announced a series of large-scale investment plans in South Korea, KIOXIA is also moving to join the race to expand production in earnest.
The Japanese government is pushing to expand domestic production of semiconductors, which are considered strategic goods for economic security. The Takaichi Cabinet has designated semiconductors as one of 17 strategic sectors to be prioritized for development. KIOXIA's latest investment is seen as a move to strengthen its competitiveness in AI memory while aligning with Japan's strategy to localize its semiconductor supply chain.
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