[News] Kioxia Urges Bain and Toshiba to Sell Shares, Aims to Double AI NAND Market Share in Three Years

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On December 18, Japan’s leading NAND Flash manufacturer, Kioxia, debuted on the Tokyo Stock Exchange’s Prime Market with its Initial Public Offering (IPO). According to a report from MoneyDJ, citing Nikkei, Kioxia’s president, Nobuo Hayasaka, announced on December 19 that the company plans to urge its two major shareholders, Bain Capital and Toshiba, to sell additional shares to meet the requirements for continued listing.

Plans to Meet Requirements for Continued Listing

According to the Nikkei report on December 19, companies listed on the Tokyo Stock Exchange’s Prime Market must ensure that at least 35% of their shares are publicly traded within five years. Currently, Kioxia’s publicly traded share ratio stands at 28%. To fulfill the requirements for continued listing, the company intends to urge its two major shareholders, Bain Capital and Toshiba, to sell additional shares within the next three years, aiming to reach the 35% threshold by 2030.

Notably, following its IPO, HBM giant SK hynix has become Kioxia’s third-largest shareholder, holding a 14% stake, according to another Nikkei report.

Focus on NAND Flash for AI Applications

In addition to outlining plans to meet the requirements for continued listing, Hayasaka also emphasized Kioxia’s objective to enhance profitability through NAND Flash products  for AI applications, according to the report. The company aims to double its current market share in this segment, targeting an increase from 9% to 17% within the next 2–3 years.

The report also highlights Kioxia’s plans to to ramp up production of its cutting-edge NAND Flash products at its Kitakami plant, scheduled to begin in September 2025. These next-generation NAND Flash products are projected to deliver an 80% increase in data transfer speeds.

According to TrendForce, in NAND Flash market, Kioxia ranked third in revenue in the third quarter of 2024, with a 15.1% market share, after Samsung (35.2%) and SK Group (20.6%)

Beyond NAND Flash, the company is also working on next-generation memory technologies. According to the report, citing Hayasaka, it takes at least three years from research and development to the production of new products, and Kioxia is currently developing a new type of DRAM using oxide materials, which aims to enhance energy efficiency.

Read more

• [News] Kioxia Finalizes IPO Price, SK Hynix Poised to Become Third-Largest Shareholder
• [News] Kioxia Reportedly Planning Production Cuts Amid NAND Flash Market Challenges

(Photo credit: Kioxia)