KIOXIA Expands Flash Memory Production, Ends 2022 Cuts

In recent int On February 29th, KIOXIA made a significant announcement, signaling a strategic reevaluation of its flash memory production reduction plan that has been in effect since 2022. This decision comes in response to the positive turn in the semiconductor market, which had faced challenges in recent times.

Projections indicate that by March of the current year, the factory's utilization rate is expected to return to approximately 90%, contingent on market demands. The company, in its official communication, underscores its commitment to averting further performance downturns, securing substantial investment capital, and achieving a noteworthy shift from losses to profits.

In October 2022, KIOXIA initially disclosed a production reduction of about 30% at its Kitakami Factory (located in Kitakami City, Iwate Prefecture) and Yokkaichi Factory (located in Yokkaichi City, Mie Prefecture). This move was in response to diminished demand for smartphones and computers following the aftermath of the COVID-19 pandemic. Despite persistent market challenges in 2023, necessitating ongoing production cuts, the company is poised for a positive trajectory.

Concurrently, global storage industry leaders such as Samsung and SK Hynix amplified their production cutbacks throughout 2023, while Micron's reduction is anticipated to extend into 2024.

KIOXIA's released financial data for the period spanning April to December 2023, unveiled in February, reveals a net loss of 254 billion Japanese yen across three quarters, marking the most substantial loss since its separation from Toshiba in 2017.

In contrast, the semiconductor market is undergoing a renaissance. The World Semiconductor Trade Statistics organization (WSTS) anticipates a robust recovery in the memory semiconductor market by 2024, projecting a growth rate of 44.8% compared to the preceding year.