Overview
- Japan's industry ministry has announced a $1.64 billion subsidy for Kioxia and Western Digital to enhance NAND memory chip production.
- The investment is expected to create 9,000 jobs and help Japan reclaim its status as a major chip manufacturing hub.
- The subsidies will support the construction of two state-of-the-art facilities in Mie and Iwate prefectures, targeting the production of 218-layer 3D NAND chips.
- The move comes amid increasing global demand for high-capacity memory, driven by the growth of generative AI and data centers.
- Merger talks between Kioxia and Western Digital, previously stalled by opposition from SK Hynix, may be revived following the new investment.