November 8, 2024 /SemiMedia/ — Kioxia said on November 5 that it expects global demand for flash memory to grow approximately 2.7 times by 2028, driven by rapid advancements in artificial intelligence.

To meet this anticipated demand, the chipmaker is moving forward with a capacity expansion at its new factory in Kitakami, Iwate Prefecture, north of Tokyo. Although the factory was initially scheduled to begin production last year, Kioxia has postponed its start to autumn 2025 to ensure sufficient capacity for future market needs.

The widespread adoption of AI is spurring global investment in servers, and the addition of AI features in consumer devices like smartphones and PCs is also expected to fuel demand further.

“With the Kitakami plant set to begin operations next autumn, we will have enough production space to meet demand,” said Kioxia Executive Vice President Tomoharu Watanabe.

In addition, Japan announced in February that it would provide up to $1.64 billion in subsidies to Kioxia and its partner Western Digital to support capacity expansions at the Yokkaichi and Kitakami plants.