Kioxia plans to invest over ¥1 trillion in a third Iwate factory producing its latest high-density three-dimensional NAND flash.

Kioxia plans to invest more than ¥1 trillion, reported as approximately $6.27 billion, in a new manufacturing facility at its Iwate Prefecture production site in northern Japan. It would be the third factory at that site.

The plant is intended to manufacture Kioxia’s latest high-density three-dimensional NAND flash memory. The expansion was linked to storage demand generated by large AI-service workflows.

Kioxia began shipping its tenth-generation BiCS stacked NAND flash during the preceding month. The report also said Kioxia and SanDisk would apply for Japanese government subsidies, although no subsidy amount or approval was disclosed.

The plan was reported ahead of an expected formal announcement on Aug. 27. Accordingly, the source described a planned investment rather than a completed factory or operating production capacity.