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Global Commodity Intelligence
Q2 2025 | APRIL - JUNE
Global Commodity Intelligence
Q2 2025 | APRIL - JUNE
Alert - Flash Memory Surge: Kioxia Predicts 2.7X Demand Increase
Key Takeaways
- Kioxia projects a nearly 3X increase in global flash memory demand by 2028, driven by AI and data-centric technologies.
- Kioxia to enhance production capacity with a new facility in Kitakami by 2025, supplementing the Yokkaichi site.
- The rising demand for flash memory underscores significant market opportunities and the importance of strategic investment and technology.
Kioxia Corporation, Japan's leading flash memory manufacturer, has issued a forecast projecting that global demand for flash memory will nearly triple by 2028, driven largely by the exponential growth of artificial intelligence (AI) applications and data-centric technologies. According to Kioxia, this anticipated 2.7X increase in demand reflects the expanding role of AI, big data, and digital transformations that rely heavily on robust and scalable memory storage solutions. As AI systems become advanced, their need for extensive data storage and rapid processing continues to grow, making flash memory a critical component in these applications.
To meet this projected demand, Kioxia has outlined plans for a new, state-of-the-art facility in Kitakami, Iwate Prefecture, set to be launched by autumn 2025. This Kitakami facility is designed to complement Kioxia’s existing site in Yokkaichi, Mie Prefecture, currently one of the largest flash memory production locations globally. By strategically adding capacity in Kitakami, Kioxia aims to ensure it can deliver the volume and quality required by the global market.
Earlier in February 2024, the Japanese government announced a subsidy package of up to $1.64 billion to support Kioxia’s growth, in partnership with U.S.-based Western Digital. This is expected to enhance manufacturing infrastructure at both the Kitakami and Yokkaichi sites, securing Japan’s competitive edge in the global memory market. This strategic funding aligns with Japan’s broader initiative to strengthen its position in the semiconductor and memory industries.
Complementing this governmental support, Kioxia has also secured a major financing deal from a consortium of Japan’s largest banks, including Sumitomo Mitsui Banking Corp., MUFG Bank, and Mizuho Bank. This financing package includes the extension of existing loans totaling ¥540 billion (approximately $3.43 billion) as well as the provision of a new loan facility worth ¥210 billion. These funds are aimed at advancing Kioxia's technological capabilities and maintaining its competitive standing in the flash memory market.
With substantial backing from both government and private sector partners, Kioxia is seeking to expand its capabilities and prepare to fulfill the storage needs driven by AI and data-centric applications. This expected surge in demand for flash memory in the near future also presents significant opportunities for other industry players to innovate and capture market share in this sector. The global market's rapid growth highlights the importance of strategic investments and technological advancements to meet the emerging needs of high data-driven applications.
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