Kioxia, a Japanese NAND flash manufacturer, forecasts a 2.7-fold increase in NAND memory demand by 2028, driven by AI, which is expected to impact SSD prices significantly. The company's new K2 plant will begin mass production of its latest NAND products in autumn 2025, aiming to capitalize on AI-driven demand.
According to Reuters and Nikkei, Kioxia, in partnership with Western Digital, is expanding NAND production capacity in Japan to meet growing demand. Despite earlier delays due to market conditions and financial losses, Kioxia has accelerated its production timeline, aiming to begin mass production of eighth-generation BiCS8 NAND in September 2025. A new cleanroom at its Yokkaichi factory will further boost production capacity.
In February 2024, the Japanese government announced subsidies of up to US$1.64 billion for Kioxia and Western Digital to expand NAND production at both the Yokkaichi and Kitakami factories. However, in October 2024, Bain Capital, Kioxia's largest shareholder, suspended the company's plan to go public in Tokyo, citing concerns over market valuation.
Despite recent setbacks, Kioxia remains optimistic about its future. EVP Tomoharu Watanabe stated the company will assess market trends before deciding on an IPO date and emphasized no immediate funding concerns. Kioxia's focus on cost-effective R&D rather than advanced equipment has delayed products with more memory layers, but it believes it can still compete effectively with Samsung's 236-layer NAND.
Kioxia plans to ramp up production with its BiCS8 NAND and expand its capacity. The K2 plant, set to begin operations in 2025, will be crucial in meeting the surge in NAND demand driven by AI. Watanabe also mentioned the company is optimizing production efficiency and has reserved space for future expansion at the Kitakami factory.
The global NAND market is forecasted to reach US$91.1 billion by 2025, marking a 50% year-over-year increase. This growth is expected to set a historical record, and Kioxia anticipates that the next five years will see rapid expansion in the NAND market.
