Japanese memory giant Kioxia and its American partner Western Digital are planning to jointly build a NAND flash wafer fab in the United States, with the project receiving support from both the Japanese and US governments.
The alliance, traditionally centered its production in Japan at facilities in Yokkaichi and Kitakami, is now looking to expand its geographic footprint. This move comes as global NAND demand is surging, driven by AI servers, AI PCs, and smart vehicles, with growth rates between 13.8% and 20% in 2025.
The push for a US factory is largely driven by Western Digital's need for capacity expansion. The company had previously explored sites in Michigan and is now considering leveraging existing infrastructure. With new fabs typically taking over three years to become operational, the partners are moving to address a potential supply gap.
The plan aligns with US policy under the CHIPS and Science Act, which provides subsidies to attract semiconductor manufacturing. For Japan, supporting this overseas expansion helps maintain its influence in NAND core technology, a field pioneered by Kioxia's predecessor, Toshiba.
ICgoodFind: This cross-Pacific venture could significantly rebalance global NAND production, creating new opportunities as the market faces supply constraints and rising prices.
