Kioxia and Sandisk outlined a joint capital investment plan totaling over $31 billion (approximately 5 trillion yen) through 2032 to expand advanced 3D NAND flash memory production in Japan. The planned deployment of capital is contingent on Japanese government subsidies and builds on the joint venture’s 25-year manufacturing partnership, which has previously directed more than $50 billion into local fabrication infrastructure.
The capital expenditure will fund advanced tooling, AI-driven cleanroom automation, and infrastructure expansion across the joint venture’s primary manufacturing hubs at the Yokkaichi and Kitakami plants. Both organizations aim to secure multi-year bit growth and stabilize global flash supply as high-density storage demands accelerate across enterprise workloads, hyperscale infrastructure, edge deployments, and client AI architectures.
Fab3 Construction Underway at Kitakami Plant
In conjunction with the investment roadmap, Kioxia has initiated site preparation for Fab3, a new semiconductor fabrication facility on land south of Fab2 at the Kitakami Plant in Iwate Prefecture. Fab3 is designed to manufacture the next-generation BiCS FLASH 3D NAND technology, with initial production targeted for fiscal year 2029. Final deployment schedules, cleanroom buildouts, and equipment installations will be adjusted in phases based on market demand and finalized government support allocations.
This expansion follows the January agreement that formally extended the joint venture operating framework at the Yokkaichi facility through December 2034. The joint venture structure allows both companies to co-invest in wafer fabrication assets, share process technology development, and leverage smart manufacturing systems to scale production yields on leading-edge node transitions.
Leadership Perspectives on Long-Term Strategy
Executive leadership highlighted that sustained capital deployment remains critical to maintaining competitive bit density, power efficiency, and high-bandwidth output for demanding compute platforms.
“This joint investment further strengthens our longstanding partnership with Sandisk and underscores Kioxia’s strong commitment to contributing to the advancement of an AI-driven society,” said Hiroo Ota, President and CEO of Kioxia. Ota also pointed to strategic support from the Japanese government as essential to maintaining production competitiveness.
“For decades, Sandisk and Kioxia have jointly developed world-class NAND flash memory technology,” said David Goeckeler, Chairman and CEO of Sandisk. Goeckeler said the planned investments are in line with the company’s business strategy and financial guidance, ensuring supply for growing customer demand while creating new economic opportunities in the communities where the joint venture operates.
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