Kioxia to Invest 1 Trillion Yen in New Plant Expansion as NAND Market Competition Intensifies
Aggressive Investment as YMTC Significantly Boosts Shipments
Kioxia, the Japanese semiconductor memory manufacturer, has announced plans to build a new production plant at its Iwate Prefecture site, with an investment totaling 1 trillion yen (approximately 8.7 trillion won). The move comes as China’s Yangtze Memory Technologies Co. (YMTC) significantly increased its shipments in the second quarter this year, reaching a market share on par with Kioxia. The aggressive expansion investment is seen as an effort to defend its market share.
According to the Nihon Keizai Shimbun on August 27, Kioxia will establish its third manufacturing plant within the Kitakami facility in Iwate Prefecture. The total investment is expected to exceed 1 trillion yen, with Kioxia partnering on a joint investment with U.S.-based SanDisk. The goal is to commence operations after 2029. Kioxia stated that the expansion is due to rising demand for its main product, NAND flash memory.
The industry views increased competition over market share as a key factor, following the growth in NAND flash shipments by China’s YMTC. According to global NAND flash shipment market share data for the second quarter released by research firm Counterpoint Research on August 13, both Kioxia and YMTC ranked third at 14%. Samsung Electronics led with 25%, followed by SK hynix at 22%, with these two Korean companies collectively accounting for nearly half of the global market, intensifying the contest for third place.
YMTC’s shipments have increased by more than 22% year on year and over 5% quarter on quarter, demonstrating continued growth. YMTC is reportedly pursuing a stock market listing, and further investment in production facilities is expected through future capital raising.
Hot Picks Today
"We Can't Live With So Many Tourists"... Japan to Impose Nightly Accommodation Tax as Visitor Numbers Soar
- [Exclusive] "If They Go to China, Death Goes Undetected"... National Pension Funds Leak as Foreign Beneficiaries Remain 'in the Dark'
- "Why Have Subway Station Escalators Been Left Broken for Months?"
- HYBE: Men Earn 158 Million Won, Women 49 Million Won... Power and Pay Concentrated Among a Few Male Executives
- A Surprising Turnaround: From Sighs of "At Least Read the Instructions" to Doubling Sales by Welcoming Seniors
The Japanese government also plans to actively support Kioxia’s plant expansion in line with its policy of fostering the semiconductor industry. The cabinet led by Japanese Prime Minister Sanae Takaichi has designated semiconductors as a core strategic item for economic security and included them among 17 key sectors for focused development.
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.
