an announcement to celebrate the start of production of the Fab 7 factory at the Yokkaichi Plant in Mie Prefecture, Japan together with Western Digital. Over time, capacity will be ramped up at Fab 7, Kioxia’s state-of-the-art semiconductor manufacturing facility. The total investment in the first phase of the Fab 7 factory is about 1 trillion yen, and the government will subsidize part of the funds to ensure the stable production of Japan’s cutting-edge semiconductor production facilities.
The first phase of Fab 7 will produce a 3D NAND flash, including 112-layer and 162-layer products and a range of future nodes. The partnership between Kioxia and Western Digital will add a sixth flash memory production facility to strengthen its position as the world’s largest flash memory production base. It is understood that the 162-layer 3D NAND flash memory is planned to start shipping in early 2023.
Nobuo Hayasaka, President, and CEO of Kioxia Corporation said, “
Fab7 is the latest and most technologically advanced semiconductor manufacturing facility in Japan and will be indispensable for Kioxia’s future. Long-term global demand for memory products is expected to increase as the world consumes more data across a variety of connected devices. We will continue to invest for the future and respond to market needs, in turn helping to build a digital society that enriches people’s lives.”
With the recent rise in costs due to inflation, a sluggish consumer market, and high inventory levels, Kioxia announced that it will cut about 30% of its 3D NAND flash memory capacity, but that doesn’t seem to affect Kioxia’s investment plans for future capacity.