Kioxia and Western Digital will invest 49 billion in modernization

Kioxia and Western Digital will invest $4.9 billion in modernization of flash memory production

The memory chip production industry has not been in the best shape over the past year, but market participants see prospects for development, and therefore are committing to investing heavily in modernizing production. Kioxia and Western Digital will be helped to do this in Japan by local authorities, who will cover up to a third of capital costs.

  Image source: Kioxia

Image source: Kioxia

As explained Nikkei Asian Review with reference to statements by the Ministry of Economy, Trade and Industry of Japan, the authorities of this country are ready to support the initiatives of the two indicated manufacturers to modernize enterprises producing solid-state memory in Japan, for a total amount of about $1.6 billion. At the same time, Kioxia and Western Digital are going to spend on the corresponding needs are about $4.9 billion in current exchange rates, so government subsidies will account for about a third of the costs. The companies have been collaborating for a long time within the framework of a joint venture, which originated during the existence of Toshiba and SanDisk. The business was the first to go to Kioxia, and SanDisk was absorbed by Western Digital.

The corresponding budget also includes a project to modernize two enterprises in the west and north of Japan, which will be able to produce eighth and ninth generation solid-state memory with increased read and write speeds, as well as reduced power consumption. The corresponding memory chips can be effectively used in artificial intelligence systems. In total, it is planned to spend about $3 billion on the modernization of the two enterprises, of which about a third will be covered by government subsidies. Japanese authorities express hope that the two enterprises will be able to create up to 9,000 new jobs in their respective areas of the country. At the same time, the Japanese government, by providing support for the initiatives of the American company Western Digital, will be able to demonstrate loyalty to its overseas political partners. Deliveries of new generation memory after modernization of enterprises are planned to begin in September next year.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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