Little-known company is thriving thanks to AI

Japanese memory chip maker Kioxia predicts demand for components will continue to rise as AI demand continues to boom.

Kioxia logo in front of a factory in Yokkaichi, Mie Prefecture (Japan). Photo: Bloomberg .

Along with Korean companies like Samsung Electronics and SK Hynix, Kioxia (Japan) is one of the names benefiting from the booming demand for AI.

Kioxia shares have tripled since its Tokyo IPO in December 2024, according to Bloomberg . Company representatives predict that demand for NAND memory chips will increase about 20% per year as companies operating AI data centers continue to expand.

“The demand is huge, especially from companies that need chips for generative AI.

We also accept customers who need to replace data center servers installed 5-6 years ago, as well as some units that lack hard drives,” said Tomoharu Watanabe, Vice President of Kioxia.

The Tokyo-based company believes the market will maintain a rapid expansion pace, and has therefore launched a month-by-month investment strategy to ensure the new plant meets demand.

Kioxia began operating its second flash memory chip manufacturing facility in Kitakami, Iwate Prefecture, Japan, in early October. The company plans to start producing advanced memory chips at the facility in the first half of 2026.

Kioxia's stock growth since its IPO in December 2024. Photo: Bloomberg .

Kioxia is also increasing investment in chip plants in Kitakami and Yokkaichi, Mie Prefecture, aiming to narrow the gap with Samsung and SK Hynix.

The company plans to double memory chip capacity at its factories in five years starting from fiscal 2024 (ending March this year).

Memory chip prices are expected to gradually recover from the post-Covid-19 recession, as companies ramp up construction of data centers globally.

The NAND memory chip market is showing signs of recovery. According to research firm TrendForce , NAND memory chip prices are expected to increase 5-10% in the fourth quarter compared to the previous quarter. In the past, this market was affected by sluggish demand for smartphones and computers, combined with excessive inventory.

Kioxia was founded in early 2019 after separating from Toshiba Corporation. The company specializes in manufacturing NAND memory chips used in all devices such as smartphones, laptops and parts that need fast access in data centers.

Source: https://znews.vn/cong-ty-it-nguoi-biet-dang-an-nen-lam-ra-nho-ai-post1590850.html