Kioxia expands with new Kitakami fab as AI drives flash memory boom

Kioxia, Japan's leading NAND flash memory maker and former Toshiba Memory unit, opened a second highly automated fabrication plant in Kitakami, northern Japan, to meet surging demand for AI data‑center storage.

AI‑driven growth in data‑center construction has lifted worldwide demand for flash memory, sending prices higher; Kioxia’s share price has risen about seven‑fold this year, briefly overtaking Toyota as Japan’s largest market‑capitalisation company. The company projects operating profit of 1.3 trillion yen for the April‑June quarter, far above the previous year.

CEO Hiroo Ota said the market for flash memory will continue to expand, but the firm faces strong competition from China’s YMTC and concerns about a possible valuation bubble. Kioxia is also considering a U.S. stock listing.

The new plant has created local jobs and boosted the regional economy in Kitakami, though some residents remain cautious about the sector’s cyclical nature.