Kioxia and Sandisk plan to invest more than $31 billion in Japan
Japan’s Kioxia and America’s Sandisk plan to invest more than $31 billion in Japan by 2032 in the development of semiconductor technologies and the expansion of production capacity. The companies link this plan to growing demand for memory chips amid the development of artificial intelligence.
Investment terms
The joint investment program is designed for six years and depends on government support, the companies said in a statement. As Channel NewsAsia reports, the plan includes building a new memory chip production facility at Kioxia’s plant in Kitakami, northern Japan.
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New production facility
According to Kioxia CEO Hiroo Ota, investments in the new production facility will amount to 1.8 trillion yen, or about $11.3 billion. At its facility in Kitakami, Kioxia already produces tenth-generation BiCS Flash memory, developed jointly with Sandisk.
On August 27, Ota and Sandisk CEO David Goeckeler met with Japanese Prime Minister Sanae Takaichi. The growth of the artificial intelligence sector has contributed to Kioxia’s recovery, as the company had previously been seen as a symbol of the problems facing Japan’s semiconductor industry.
