Kioxia has announced it will begin construction of a new fabrication facility (Fab2) at its Kitakami Plant in Iwate Prefecture, Japan for the possible expansion of production of its proprietary 3D flash memory BiCS FLASH. Construction of the facility is scheduled to commence in April 2022 and is expected to be completed in 2023.
The new Fab2 facility will utilize AI-based manufacturing to increase production capacity of the entire Kitakami Plant and further enhance product quality, allowing Kioxia to expand its business organically and take advantage of the medium to long term growth of the flash memory market driven by the accelerating adoption of cloud services, 5G, IoT, AI, automated driving and the metaverse, according to the company.
Kioxia said Fab2 will be built on the east side of the existing Fab1 facility at Kitakami Plant, and will have an earthquake-resistant architectural structure and environmentally friendly design that utilizes energy saving manufacturing equipment and renewable energy sources. Kioxia plans to fund the capital investments for the construction of the Fab2 from its operating cash flow.
"The construction of Fab2 is a key milestone for Kioxia to further strengthen our strategic development and production capability for advanced memory products, so that we are in an even better competitive position to address the increasing market demand for memory products," said Nobuo Hayasaka, president and CEO, Kioxia. "We are pleased to announce that Fab2 will not only increase production capacity of Kioxia, but will also serve as an important base for implementing the kind of high level and sustainable operations that Kioxia strives to achieve going forward."
Kioxia said it plans to hold discussions with Western Digital in regard to expanding the flash joint venture to the Fab2 investment.