TOKYO & MILPITAS, CALIF. -- Kioxia Corporation, a subsidiary of Kioxia Holdings Corporation (TOKYO: 285A) and Sandisk Corporation (NASDAQ: SNDK) announced the start of operation at the Fab2 (K2), a state-of-the-art semiconductor fabrication facility, at the Kitakami Plant in Iwate Prefecture, Japan. Fab2 has the capability to produce eighth-generation, 218-layer 3D flash memory, featuring the companies’ revolutionary CBA (CMOS directly Bonded to Array) technology, and future advanced 3D flash memory nodes to meet growing demand for storage driven by AI. Production capacity at Fab2 will ramp up in stages over time, in line with market trends, with meaningful output expected to begin in the first half of 2026.

The Fab2 facility has an earthquake-absorbing architectural structure and a design that utilizes state-of-the-art energy saving manufacturing equipment. The facility uses artificial intelligence for enhanced production efficiencies and employs a space-efficient facility design that enlarges the space available for manufacturing equipment in its clean rooms. A portion of investment for Fab2 is subsidized by the Japanese government according to the plan approved in February 2024.

“We are pleased to start operations of our new Fab2 facility at Kitakami Plant,” said Koichiro Shibayama, President and CEO of Kioxia Iwate Corporation, which operates the Kitakami Plant. “The eighth and further generation 3D flash memory products produced at Fab2 will offer new value for rapidly emerging AI market. We will continue to leverage our partnership and economies of scale to produce advanced flash memory products and achieve organic corporate growth. Kioxia will continue to contribute to the advancement of the semiconductor industry and the development of local and domestic economies.”

Maitreyee Mahajani, Senior Vice President of Flash Front End Operations at Sandisk said, “As AI advances, it is poised to transform industries, redefine careers, and reshape daily life in ways we’re just beginning to imagine. Flash memory is at the very center of this transformation, unlocking the speed, efficiency and scalability needed for this next wave of innovations. We are proud of our long-standing partnership with Kioxia and the scale it provides to enable our customers to fully harness AI opportunities.”

Kioxia and Sandisk have shared a successful joint venture partnership for over 20 years and will continue to maximize synergies and competitiveness through joint development of 3D flash memory, and making capital investments according to market trends.