Kioxia, the Bain Capital-backed Japanese memory chipmaker, projects a 2.7-fold increase in flash memory demand by 2028 driven by the surge in artificial intelligence (AI) applications. This anticipated demand is spurring Kioxia’s capacity expansion, particularly at its new Kitakami facility in Iwate prefecture, where production is set to begin in autumn 2025 after delays.
The growth of AI technologies is boosting investment in data servers and rekindling demand for smartphones and PCs that integrate AI features. Kioxia aims to meet this demand surge with expanded production capacity not only at Kitakami but also at its Yokkaichi facility in Mie prefecture. The company began sample shipments of its latest NAND flash memory generation in July.
Kioxia’s journey has seen substantial shifts, including its separation from Toshiba under a Bain-led consortium. While the company had considered an initial public offering (IPO), Bain canceled it in October after investor pressure to lower the targeted valuation.
Kioxia's role is pivotal in Japan’s strategy to revitalize its chip industry. As part of this, the Japanese government pledged subsidies worth up to $1.64 billion in February to support Kioxia and Western Digital in expanding production at Yokkaichi and Kitakami, underscoring its strategic significance in the global semiconductor landscape.