AI Revolution Set to Propel Memory Demand, Kioxia Predicts

Published: 30 Sep 2025

Author: Precedence Research

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Kioxia Holdings Corp., a leading memory chipmaker based in Tokyo, is forecasting robust annual growth of approximately 20% in global demand for NAND flash storage, driven largely by the rapid expansion of AI-powered data centers. As hyperscale operators scale their infrastructure to meet the demands of generative AI applications, Kioxia is responding with aggressive investments and expansion plans to stay ahead of the curve.

Executive Vice President Tomoharu Watanabe shared with Bloomberg News that the company makes investment decisions every month, ensuring its cutting-edge facilities are equipped to meet the surging market needs. Kioxia specializes in NAND flash memory, a critical component used in smartphones, laptops, and particularly in high-speed storage systems within data centers. In these areas, performance and fast access are crucial for AI workloads.

“Demand is especially strong from hyperscalers seeking NAND chips to support generative AI," Watanabe stated. “We’re also seeing a wave of customers looking to replace aging server infrastructure from five to six years ago. Many are even struggling to source sufficient hard drives, indicating a broader demand surge.”

Kioxia’s rising profile in the semiconductor industry aligns with a broader AI-driven rally in tech stocks. Alongside South Korean giants Samsung Electronics and SK Hynix, Kioxia has seen its market value skyrocket this year, with shares more than tripling since its IPO debut in Tokyo last December. Investors are increasingly viewing Kioxia as a key enabler of Artificial Intelligence infrastructure.

To seize the opportunity, Kioxia is heavily investing in its manufacturing plants in Kitakami and Yokkaichi, with ambitions to double production capacity within five years starting from fiscal 2024, which concluded this past March. This expansion is aimed at narrowing the gap with its dominant rivals, Samsung and SK Hynix, in the NAND flash space.

The memory chip sector, which had been in a post-pandemic slump due to sluggish demand for smartphones and PCs, is now showing signs of a turnaround. According to market research firm TrendForce, NAND flash prices are expected to increase by 5% to 10% in the final quarter of the year. As AI continues to transform data infrastructure, Kioxia is positioning itself to be at the forefront of this next wave of digital innovation.