[News] Kioxia Reportedly Starts 218-Layer NAND Mass Production in July with Full Utilization in June

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Japan’s leading NAND flash manufacturer, Kioxia, has reportedly increased its production line utilization rate to 100% as of June and is set to commence mass production of its most advanced NAND flash products in July.

According to a report from Nikkei on July 3rd, Kioxia will start mass-producing its latest NAND flash products at its Yokkaichi plant in July. This move is said to be meeting the rapidly growing data storage demands driven by the proliferation of generative AI. Reportedly, the new NAND flash products Kioxia will produce feature 218-layer 3D flash, offering approximately 50% more storage capacity and requiring about 30% less power for data writing compared to current products.

Per the same report, besides the increasing demand driven by AI, the improvement in the memory market also make Kioxia’s production line utilization rate to return to 100% in June. Previously, Kioxia had been implementing production cuts since October 2022 due to sluggish demand for smartphones, with the reduction scale exceeding 30% at its peak.

In an earlier report from The Register, Kioxia announced a partnership with Western Digital (WD) to invest JPY 729 billion in mass-producing advanced memory products. The new plant, located in the Kitakami plant area, is scheduled to start operations in 2025. The Japanese Ministry of Economy, Trade and Industry will provide a subsidy of up to JPY 243 billion (roughly USD 1.63 billion).

In April 2017, Toshiba spun off its semiconductor business focused on NAND Flash, creating “Toshiba Memory.” This entity was renamed “Kioxia” on October 1, 2019. Toshiba currently holds approximately 40% of Kioxia’s shares.

According to another Reuters’ report on June 26th citing sources,  they have indicated that Kioxia will soon submit an initial application for listing on the Tokyo Stock Exchange, aiming for an IPO by the end of October. Kioxia had been evaluating the possibility of going public to raise funds, and with the recovery of the semiconductor market and a rapid improvement in performance, it has determined that the timing is favorable for an IPO.

The sources cited by Reuters further indicate that Kioxia plans to submit its formal IPO application by the end of August, with the goal of going public by the end of October. To meet this timeline, preparations are being carried out at a faster pace than usual for an IPO. However, depending on progress, the IPO could be delayed until December. The sources also noted that Kioxia’s major shareholder, the American investment fund Bain Capital, plans to sell part of its stake during the IPO to recoup some of its investment.

Read more

• [News] NAND Flash Giant Kioxia Reportedly Plans IPO by Late October amid Market Recovery
• [News] With Memory Market Recovering, Kioxia Has Reportedly Ceased Production Cuts and Secured Bank Lending

(Photo credit: Kioxia)