Japan Boosts NAND Chip Production with $1.64 Billion in Subsidies to Kioxia and Western Digital

The substantial investment aims to secure global chip supply amid rising demand and geopolitical tensions, while potentially reviving merger talks between the two companies.

• 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.

3 Articles

Tom's Hardware The Register CNA