Kioxia expects the demand for NAND flash memories to increase by approximately 2.7 times by 2028. In other words, the former Toshiba Memory expects almost triple the demand in the segment in which it operates, and is preparing to take advantage.
As expected, Kioxia attributes this big boost in demand for NAND to the tech industry’s current excitement about Artificial Intelligence. Several companies around the world are expanding their servers and data centers to meet the demands of AI, and this has resulted in greater demand for components.
But it is not just in the professional segment that AI should drive greater demand for memories. The introduction of technology features into consumer electronics such as PCs and smartphones should also help Kioxia sell more NAND flash memory.
Kioxia seeks expansion in Kitakami
Evidently, a company would not talk about an increase in demand for its products without promising conditions to meet this demand. And Kioxia is preparing a new factory in Japan to meet its own expectations.
The facility would start producing memories last year, in Kitakami, in the Iwate district, Japan. However, the company ended up delaying the operation of its new factory, which will begin operating next year, 2025.
Tomoharu Watanabe, vice president of Kioxia, stated that the company currently has “space” in its factory in Yokkaichi – that is, it can increase production there. Adding this to the new facility in Kitakami, the company hopes to be productive enough to respond to the growth in demand for NAND.
Japanese memory company faces ups and downs
The last few years have not been the most stable for Kioxia, which was even offered for sale this year. The company is managed by the financial capital group Bain, which gave up selling the company this month, as it did not obtain the total value it was seeking for it.
In addition, Kioxia has Western Digital as a close partner, and the companies have been negotiating a possible merger for some time. SK Hynix, however, opposes the agreement and has blocked its progress.
Related news:
If demand for NAND grows as much as the company estimates, things could look up for Kioxia. Even more so after the Japanese government promised up to US$1.64 billion in subsidies for the company and its partner WD to expand their production capacities in Yokkaichi and Kitakami.
Source: Reuters
Join the Adrenaline offer group
Check out the main offers on hardware, components and other electronics that we found online. Video card, motherboard, RAM memory and everything you need to build your PC. By joining our group, you receive daily promotions and have early access to discount coupons.
Join the group and take advantage of promotions
Source: https://www.adrenaline.com.br/hardware/kioxia-estima-que-demanda-por-nand-vai-quase-triplicar-ate-2028/
