Kioxia plans to expand its share in the NAND memory segment while competitors focus on AI memory.

Kioxia: How a Japanese NAND manufacturer is benefiting from AI growth

Samsung and SK Hynix are large “universal” memory makers, while Kioxia (formerly part of Toshiba) has traditionally specialized in NAND chips for long‑term data storage. Company leadership believes that in an era of surging demand for artificial intelligence it can successfully grow this product line without changing strategy.

What the head of Kioxia says
Executive Chairman of the Board Stacy Smith told Bloomberg that competitors caught up in the race for DRAM and HBM pay little attention to expanding NAND production. Meanwhile, demand for this memory remains steady, especially in the “north” segment of the market.

> “We already have leading positions in these segments at the right time,” Smith said during an interview in Tokyo.

> The AI boom brings the company a flow of funds after years of struggling to survive on low NAND prices. After its IPO at the end of 2024, Kioxia shares rose more than 13 ×, confirming investors’ faith in its potential.

Partnership with SanDisk
Since integrating Toshiba’s business into the Kioxia structure (which took over 25 years), the company has worked with SanDisk on NAND manufacturing. The joint venture is located in Japan, and the agreement was extended through the end of 2034. Under the terms of the deal, SanDisk agrees to pay Kioxia more than $1.1 million by the end of 2029.

SanDisk’s shares rose 17 % on Friday, boosting Kioxia’s share value by over 11 %. The first company released a quarterly earnings forecast that exceeded market expectations by 163 %. Kioxia plans to accelerate capacity expansion faster than NAND demand growth—currently projected at about 20 %.

Market share and future
In the third quarter of last year, Kioxia’s share of the NAND segment was 15.3 %, ranking third after Samsung and SK Hynix. The company intends to raise this position by investing in new plants.

Recently, Kioxia appointed Hiroo Oota as CEO—a former executive vice president. Smith noted that after separating from Toshiba in 2018 the company endured tough times but is now successfully navigating this stage of development.

Thus, Kioxia maintains its focus on NAND and leverages current AI demand for accelerated growth, strengthening its position as a memory market leader.