According to a report from MoneyDJ, Japan’s major NAND Flash manufacturer Kioxia plans to go public on the Tokyo Stock Exchange by June 2025, leveraging Japan’s newly introduced IPO application process to shorten procedural timelines.

According to the report, Kioxia aims for an IPO within the period from December 2024 to June 2025, using the “S-1 Method” introduced in October 2023 to expedite the listing process. Depending on market conditions, the company is also exploring the possibility of listing as early as December 2024.

The report indicates that Kioxia plans to submit its securities registration statement to the Financial Services Agency on November 8th, targeting a market valuation exceeding JPY 1 trillion (USD 6.5 billion).

According to the report, Japan’s traditional IPO process requires companies to get Tokyo Stock Exchange approval, then file a securities registration statement with the Financial Services Agency before setting an offering price with investors. The new “S-1 Method” allows filing and investor discussions to start before approval, cutting the time to public offering from about a month to 10 days.

According to a report in the Reuters, Kioxia is the first company to use the new rules permitting firms to gauge investor interest prior to seeking listing approval from the Tokyo Stock Exchange. The Reuters report indicates that Kioxia anticipates receiving approval from the bourse in late November, with an indicative share price to be revealed around that time.

The report in MoneyDJ mentioned that previously, Kioxia had filed for listing with the Tokyo Stock Exchange in August, with plans to go public in October. However, due to a downturn in the semiconductor market and inability to secure favorable valuations, the IPO was postponed.

According to MoneyDJ, referencing another report from Reuters, the slow recovery in the memory chip market has led investors to urge Kioxia’s major shareholder, U.S. investment firm Bain Capital, to cut the company’s IPO valuation target from JPY 1.5 trillion to nearly half that amount. This investor pressure caused Bain to drop plans for an October IPO.

Read more

• [News] Kioxia Projects NAND Demand to Triple by 2028 as It Gears up for Expansion amid AI Boom
• [News] Why Is Kioxia Delaying Its IPO? Market Valuation Reportedly Half of Target

(Photo credit: Kioxia)

Though having abandoned its initial IPO plan in October due to lower market valuation, Kioxia asserts its optimism on NAND. According to a report by Reuters, the Japanese memory giant anticipates flash memory demand to grow approximately 2.7 times by 2028, fueled by the surge in artificial intelligence applications.

According to the report, Kioxia is preparing a significant capacity expansion at its new facility in Kitakami, Iwate Prefecture, in northern Japan, which was originally set to begin operation last year. Amid challenges due to a downturn in the memory chip market, the start date has reportedly been postponed to autumn 2025.

Kioxia announced in a press release that the building construction of Fab2 (K2) of its Kitakami Plant was completed in July. In addition, some administration and engineering departments will move into a new administration building located adjacent to K2 beginning in November 2024 to oversee the operation of K2.

Citing Tomoharu Watanabe, Kioxia’s executive vice president, the Reuters report notes that in addition to the sufficient capacity Kioxia has at Yokkaichi, Mei Perfecture, Kioxia’s Kitakami factory is set to begin operations next autumn, and the company expects to have ample space to meet demand.

According to a previous report by The Japan Times, Japan’s industry ministry will provide up to 242.9 billion yen (USD 1.64 billion) in subsidies to support Bain Capital-backed Kioxia and Western Digital in expanding memory chip production facilities in Mie and Iwate prefectures.

In July, the company began sample shipments of its newest generation of NAND flash memory, according to the report. In October, it also begun mass production of the industry’s first Universal Flash Storage Ver. 4.0 embedded flash memory devices with 4-bit-per-cell, quadruple-level cell (QLC) technology.

Kioxia achieved revenue of 428.5 billion yen (about USD 2.75 billion) in the first quarter of fiscal year 2024, ending June 30, reflecting a 33% increase from the prior quarter and setting a new record for quarterly revenue.

According to TrendForce, in the NAND Flash market, Kioxia ranked third in revenue in the second quarter of 2024, with a 13.8% market share, after Samsung (36.9%) and SK Group (22.1%).

Read more

• [News] Kioxia’s FY24 Revenue Reportedly to Reach JPY 1.6 Trillion, Hitting Record High
• [News] Why Is Kioxia Delaying Its IPO? Market Valuation Reportedly Half of Target

(Photo credit: Kioxia)

Kioxia is set to introduce its progress on DRAM storage-class memory (SCM) and 3D-NAND technologies at the IEEE International Electron Devices Meeting (IEDM) 2024 conference in San Francisco in December, featuring its Oxide-Semiconductor Channel Transistor DRAM (OCTRAM) technology jointly developed with Taiwan memory chipmaker Nanya Technology, as well as MRAM-based storage-class memory jointly developed with SK hynix, according to a report from Block and Files.

Kioxia will reportedly present a new type of DRAM with oxide semiconductors that reduce power consumption, MRAM suitable for larger capacities for SCM applications, and a new 3D NAND structure with superior bit density and performance.

According to the report, Kioxia has developed the DRAM with oxide semiconductors with Nanya Technology. This Oxide-Semiconductor Channel Transistor DRAM (OCTRAM) features a gate-all-round InGaZnO (Indium Gallium Zinc Oxide) vertical transistor with the oxide that can reduce current leakage to an “extremely low” level. According to Kioxia’s press release, the technology has the potential to reduce power consumption across various applications, such as AI, post-5G communication systems, and IoT devices.

The MRAM-based storage-class memory is developed with SK hynix. According to Kioxia’s press release, the companies have achieved cell read/write operation at the smallest-ever scale of cell half-pitch of 20.5 nanometers for MRAM. The press release pointed out that memory reliability tends to degrade as cells are miniaturized. The companies develop a new read/write method that can reduce the unwanted capacitance that occurs in the readout circuits.  According to Kioxia’s press release, this technology has practical applications for AI and big data processing.

Last, Kioxia developed a new 3D NAND structure, aiming to enhance reliability and prevent the performance degradation of NAND-type cell. In conventional structures, degradation of performance typically occurs when the number of stacked layers increases. Compared to the conventional structure that stacks NAND-type cells vertically, the new structure arranges NAND-type cells horizontally. The press release indicated that this new structure makes it possible to develop 3D flash memory with high bit density and reliability at low cost.

(Photo credit: Kioxia)

Japanese NAND flash memory giant Kioxia had reportedly planned to delay its October IPO. According to the latest report from Reuters, Kioxia’s major shareholder, U.S. investment firm Bain Capital, abandoned the October IPO plan after investors valued the company at only half of its target.

Reuters reported on the 11th that sources familiar with the matter said investors, citing the slow recovery of the semiconductor market, requested Bain Capital to slash Kioxia’s IPO valuation (market cap at the time of listing) to around half of the target value. This led Bain to abandon the plan to list Kioxia at the end of October.

The report cited two sources stating that while Bain Capital had set a target valuation of 1.5 trillion yen, investors valued the company at around 800 billion yen, far below the initial goal. One source added that during discussions with institutional investors in August and September, most agreed that the memory market still needed time to fully recover.

Although Bain Capital and Kioxia will continue to seek an opportune moment for the IPO, most market insiders believe that listing within this year will be challenging.

When the delay in Kioxia’s IPO was first reported in late September, TrendForce noted that the NAND flash market began to show signs of a price reversal in the third quarter of 2024 after three consecutive quarters of profit recovery.

Along with weak consumer demand, some companies have also slowed down their AI server deployments, potentially leading to an oversupply. With investors expressing concerns about the industry’s outlook, Kioxia’s decision to go public at this time may not yield a favorable valuation. The company has therefore opted to strategically delay the IPO, waiting for a market recovery.

According to TrendForce data, Kioxia maintained its position as the third-largest NAND flash brand by revenue in Q2, with a market share of 13.8%. Samsung led the market with 36.9%, followed by SK Group at 22.1%.

(Photo credit: Kioxia)

A month ago, Kioxia has reportedly submitted its initial public offering (IPO) application to the Tokyo Stock Exchange. However, as the memory market recently seems to be on a roller coaster ride, the latest report by Reuters notes that the Japanese memory chip maker has decided to cancel its plan to be listed in October.

Citing reports by Japanese media, another report by MoneyDJ indicates that Kioxia’s IPO is expected to be delayed until November or later.

Reuters points out that Kioxia has been aiming for a market valuation of JPY 1.5 trillion (roughly USD 10.39 billion). Nevertheless, the recent decline in shares of other listed memory companies, including Samsung, SK hynix and Micron, has made this target difficult to achieve.

According to Reuters, Bain Capital, which holds a 56% stake in Kioxia along with SK hynix, declined to comment. Kioxia, on the other hand, responded by saying that it is preparing to go public when the timing is right.

This is not the first time Kioxia abandoned its IPO plan. The memory giant had previously scheduled to be listed in 2020. However, due to continued market volatility and ongoing concerns about a second wave of COVID-19, the company gave up the plan in September, 2020.

A few days ago, Japan’s Tokyo Metro initiated the processes to launch its IPO next month. According to The Japan Times, Tokyo Metro aims to raise USD 2.25 billion, marking the country’s largest IPO in six years. Should Kioxia stick to its plan to kick off the IPO by 2024, the deal were to become the largest one of the year.

According to TrendForce, in the NAND Flash market, Kioxia ranked third in revenue in the second quarter of 2024, with a 13.8% market share, after Samsung (36.9%) and SK Group (22.1%).

Read more

• [News] Kioxia’s IPO Paves the Way for SK Hynix to Secure Funds for HBM Investment
• [News] Kioxia Filed for Listing, Reportedly Marking Japan’s Largest IPO of the Year

(Photo credit: Kioxia)