Kioxia and SanDisk plan over $31 billion investment in Japan memory chip production

Aug 27, 2026

Kioxia Corporation and Sandisk Corporation have announced plans to invest over $31 billion (5 trillion yen) in Japan through 2032 to expand NAND flash memory production. Driven by surging demand for AI data center components, the joint venture plans to construct Fab3 at Kioxia's Kitakami Plant, representing an $11.3 billion investment targeting operations in fiscal 2029. The massive capital expenditure plan is contingent on receiving subsidies from the Japanese government under Prime Minister Sanae Takaichi's economic policies.

Kioxia-SanDisk $31 billion investment plan

▪Kioxia Corporation CEO Hiroo Ota and Sandisk Corporation CEO David Goeckeler met with Japanese Prime Minister Sanae Takaichi on August 27, 2026 to discuss the semiconductor investments.
▪Kioxia Corporation and Sandisk Corporation have operated a joint venture for over 25 years, investing more than $50 billion in Japan and extending their framework through December 2034.
▪The planned $31 billion investment by Kioxia Corporation and Sandisk Corporation is contingent upon receiving strategic support and subsidies from the Japanese government.
▪Kioxia Corporation and Sandisk Corporation announced plans to invest over $31 billion (approximately 5 trillion yen) in Japan through 2032 to expand memory chip production capacity.

AI-driven memory chip demand

▪Major technology providers, including Alphabet Inc. and Meta Platforms Inc., are signing multiyear contracts to secure data center memory, prompting capital expenditure expansions from Samsung Electronics and SK Hynix.
▪Rising demand for high-capacity, high-performance flash memory is driven by the growth of agentic AI, physical AI, on-device AI, and generative AI systems.

Kitakami Fab3 expansion

▪Kioxia Corporation has commenced site preparation for Fab3, a new manufacturing facility at its Kitakami Plant in Iwate Prefecture, targeting operations to begin in fiscal 2029.
▪Kioxia Corporation plans to invest 1.8 trillion yen ($11.3 billion) on the new Kitakami facility to produce high-density 3D flash memory chips for AI workflows.

Japanese government subsidy support

▪Japan is extending financial support to semiconductor manufacturers with domestic factories, including Taiwan Semiconductor Manufacturing Company, Sony Group Corporation, and Micron Technology.
▪The planned investments align with the economic policy goals of the Sanae Takaichi administration to expand advanced manufacturing for cutting-edge semiconductor technologies.

NAND flash memory supply constraints

▪China's Yangtze Memory Technologies Co. is gaining market share in the lower-margin consumer segment of the NAND flash memory market.
▪A global shortage of critical AI data center components has driven up memory and storage prices, squeezing profit margins for electronics manufacturers, automakers, and Nvidia.