All NewsEducationTVBrokers
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
All NewsHome
← Back to AI & Technology

Kioxia Targets AI Demand with New High-Speed NAND Flash Memory

Created at 3 Sep · 3:36 PM1 source↑ Market-relevant
IN SHORT

Japanese semiconductor maker Kioxia is shifting its strategy to focus on the AI inference market, planning to increase sales from data center and enterprise sectors to over 60%. The company is investing heavily in advanced NAND flash and SSDs to meet the growing demand for storage as extended memory for GPUs in AI systems.

Key Numbers

200+layer 3D NAND production
60%target datacenter/enterprise sales ratio
470 billion yenannual capital expenditure target
230 billion yenannual R&D investment target
3 yearsinvestment timeframe

Who's Involved

Kioxia Holdings Corporation
Japanese memory chip maker focusing on AI infrastructure
Shuhei Ochiai
Reporter for Nikkei Asia
Kioxia Targets AI Demand with New High-Speed NAND Flash Memory

↳ Why This Matters

Kioxia's strategic pivot towards AI infrastructure highlights the growing importance of advanced storage solutions in the rapidly expanding AI market, potentially reshaping the competitive landscape for memory chip manufacturers and impacting the supply chain for data centers and telecom infrastructure.

Key facts

  • Kioxia is developing new high-speed NAND flash memory to meet AI demand.
  • The company aims to increase its datacenter and enterprise market sales ratio to over 60%.
  • Kioxia plans to invest approximately 470 billion yen annually in capital expenditures and 230 billion yen in R&D for the next three years.
  • The company is focusing on advanced 3D NAND technology with over 200 layers.
  • Kioxia is developing enterprise-grade SSDs with enhanced quality of service for AI workloads.

    • Japanese semiconductor maker Kioxia Holdings is strategically positioning itself to capitalize on the burgeoning demand for high-performance NAND flash memory driven by artificial intelligence workloads. The company outlined plans to leverage its enhanced NAND flash technology as an alternative to DRAM, aiming to strengthen relationships with major U.S. tech firms and counter competition from Chinese rivals.

    At its Investor Day, Kioxia unveiled a growth strategy centered on the "AI Inference Era," emphasizing the critical role of flash memory and SSDs as extended memory for GPUs in next-generation AI systems. The company projects that AI inference processing will increase exponentially as applications become more complex, necessitating efficient storage solutions.

    Kioxia intends to shift its strategic focus toward the AI infrastructure market, targeting an increase in its datacenter and enterprise market sales ratio to over 60% in the medium to long term. To support this transition, the company plans to invest approximately 470 billion yen annually in capital expenditures and 230 billion yen in research and development over the next three years. These investments will concentrate on high-growth, high-profit sectors, including ramping up production of its BiCS FLASH technology with over 200 layers and developing enterprise-grade SSDs with enhanced quality of service.

    The company is also developing solutions for computational storage and smartNIC architectures to reduce the load on central CPUs and GPUs, which is particularly relevant for telecom operators managing real-time AI inference. Kioxia aims to improve revenue visibility and achieve stable, highly profitable growth through disciplined investment and multi-year Long-Term Agreements (LTAs). The company expects to achieve a net cash position in the first quarter of fiscal year 2026 and will consider shareholder returns after strengthening financial soundness and ensuring liquidity for growth investments.

    Frequently asked questions

    Kioxia is focusing on providing advanced NAND flash memory and SSDs as extended memory for GPUs in AI systems, particularly for the inference phase.

    The company plans to invest approximately 470 billion yen annually in capital expenditures and 230 billion yen annually in research and development over the next three years.

    Kioxia aims to increase its sales ratio in these markets to over 60% in the medium to long term.

    What Happens Next

    01Kioxia's CXL module is currently undergoing client reviews.
    02Kioxia aims to achieve a net cash position during the first quarter of fiscal year 2026.
    03Kioxia plans to increase its sales ratio in the datacenter and enterprise markets to over 60%.
    CME Headlines
    • Risk Management and Monitoring Notice: Multi-Factor Authentication Updates - September 12
      3 Sep · 5:00 AM

    How It Developed

    Kioxia outlined plans to use enhanced NAND flash memory as an alternative to DRAM.
    The company aims to strengthen ties with major U.S. technology firms and compete with Chinese rivals.
    Kioxia hosted an Investor Day, unveiling a growth strategy for the AI Inference Era.
    The company plans to increase its sales ratio in the datacenter and enterprise markets to over 60% in the medium to long term.
    Kioxia will allocate approximately 470 billion yen annually to capital expenditures and 230 billion yen annually to research and development over the next three years.
    Kioxia expects to achieve a net cash position during the first quarter of fiscal year 2026.
    Kioxia is developing solutions for computational storage and smartNIC architectures.
    The company is ramping production of its BiCS FLASH technology, exceeding 200+ layers.

    Sources

    T1
    Kioxia outlines plan to capture AI demand with its new high-speed memory chipNikkei Asia
    T2
    Kioxia to Build New Chip Plant in Japan to Meet Rising AI Memory Demand ...bloomberg.com
    T2
    Kioxia Announces Growth Strategy for the AI Inference Era at Investor Daykioxia-holdings.com
    T2
    Kioxia Capitalizes on AI NAND Demand, Reshaping Telecom Infrastructure ...telecomobserver.com

    Related Stories

    Fujitsu CFO: Focus on AI hardware, exit commodity products
    2 Sep · 9:11 PM
    Solvay to double Taiwan chip chemical output by 2026 amid AI demand
    3 Sep · 6:11 AM
    ASML to boost Japan staff to 700 by 2030 to support chipmakers
    3 Sep · 3:11 PM
    Broadcom raises AI chip forecast, citing Big Tech demand
    3 Sep · 1:06 AM
    Nvidia buys Hugging Face for $12.93B to bolster open AI model ecosystem
    3 Sep · 12:11 PM