SanDisk Corp and Kioxia Corporation announced a joint investment plan exceeding $31 billion in Japan through 2032. The initiative remains contingent on receiving government support. SanDisk shares rose more than 4% in pre-market trading following the announcement.
The companies will upgrade manufacturing infrastructure at their Yokkaichi and Kitakami facilities. This expansion aims to increase flash memory wafer production capacity. The project builds on a partnership that has existed for over 25 years.
The investment seeks to secure global supply chains for flash memory. Increased production will address rising demand from AI and data-centric applications.