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Kioxia Plans Flash Memory Chip Facility in Japan With WDC

Kioxia said on Wednesday it plans to jointly build a new flash memory fabrication facility at its plant in northern Japan with Western Digital Corp, for about 1 trillion yen ($8.3 billion)


Japanese chipmaker Kioxia's logo is seen at its headquarters in Tokyo, on Sept 30, 2021. The group plans to build a new flash memory fab facility in the north with Western Digital. Photo: Kim Kyung-Hoon, Reuters.

 

Kioxia Holdings Corp said on Wednesday it plans to jointly build with Western Digital Corp (WDC) a new flash memory fabrication facility in its plant in northern Japan, which, a source said, may entail an investment of some 1 trillion yen ($8.3 billion).

The construction of the new earthquake-resistant facility at its Kitakami plant in Iwate prefecture is scheduled to commence next month and is expected to be completed in 2023, the Japanese chipmaker said in a statement.

It did not give investment details and a company spokesperson declined to comment further.

A source with knowledge of the matter said separately that the joint venture would be about 1 trillion yen in size and the two companies plan to discuss the venture details including an investment ratio.

Kioxia and Western Digital already jointly produce flash memory chips in Japan.

Toshiba Corp, which owns a 40.6% stake in Kioxia, said last month that it continues to look at the possibility of a sale of its stake in the firm, and has asked Kioxia to conduct an IPO as soon as possible.

 

• Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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