Kioxia Bets Over ¥1 Trillion on NAND Expansion for AI Storage

The rapid adoption of generative AI is driving demand for high-capacity, low-latency enterprise solid-state drives used in data centers. Kioxia, a major Japanese producer of NAND flash memory, is positioning the expansion as more than a cyclical capacity increase: it supports Japan’s push to strengthen domestic semiconductor production and could create additional business for Taiwan-based controller-chip partner Phison Electronics.

Kioxia recently announced plans to invest more than ¥1 trillion in advanced NAND flash fabrication capacity, targeting an anticipated shortage as AI infrastructure spending accelerates. The project will receive strategic support from the Japanese government and deepen Kioxia’s cooperation with Phison on controllers and enterprise storage products. The company has not disclosed the full subsidy amount or a definitive production start date.